ASIC Issues Final Reminder to Unregistered Financial Advisors

The Australian Securities and Investments Commission (ASIC) gave financial advisers one final letter reminding them to register.

Retail financial advisers without ASIC registration must stop advising by February 16, 2024.

AFS license holders should register their appropriate advisers as soon as possible via ASIC Connect.

During February 1–5, 2024, ASIC emailed unregistered advisers to remind them of their AFS license holder's registration requirement.

According to ASIC statistics, as of 9:00 a.m. on February 6, 2024, 757 (4.9%) individual advisors, including time-share advisors, were still unregistered.

ASIC recommends that advisers check their registration status on the Financial Advisers Register today to ensure they are listed as registered. If not, they must stop providing personal advice at midnight on February 15, 2024, unless they are registered and represented as such on the Financial Adviser Register. This includes all personal guidance and continuous support.

Starting February 16, 2024, delivering personal counsel without registration will be considered a violation of a limited civil penalty provision. The advisor's AFS licensee(s) will be found to have committed a strict liability crime and violated a civil penalty clause.

AFS license holders may start the registration process for their advisors right now by completing a 'Registering a Relevant Advisor' transaction via ASIC Connect.

Advisors need to register from February 16, 2024. Before providing personal financial advice to retail customers on relevant financial products, advisers and their AFS license holders should develop comprehensive mechanisms to verify advisor registration.

Additionally, AFS licensees should understand advisor registration expiration conditions.

ASIC will soon launch a compliance program to enforce the new rule.

About ASIC

The Australian Securities and Investments Commission (ASIC) supervises and enforces financial market and financial services regulations.

ASIC, founded in 1991, is independent of the government and responsible to the Australian Parliament. To protect consumers, investors, and creditors, ASIC regulates enterprises, securities and derivatives, financial services and markets, and consumer credit. The commission's responsibilities include licensing and overseeing financial service providers, enforcing rules and regulations, investigating misbehavior, and providing education and direction to market participants.ASIC is critical to safeguarding the integrity and stability of Australia's financial system, therefore contributing to the country's economic development and prosperity.

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