This amidst surge in non-compliance
In response to a significant number of financial advisers who are not yet registered, ASIC has granted a two-week extension for the registration of relevant providers.
Despite the initial requirement being effective from Feb. 1, records showed that 26% of financial advisers (4,036) offering personal advice to retail clients on relevant products remained unregistered as of Jan. 18.
The extended deadline is now set for Feb. 16, and ASIC is urging Authorised Financial Services (AFS) licensees to prioritise the registration of their advisers via ASIC Connect. Failure to comply with the registration mandate after this date may result in legal breaches, exposing both advisers and their AFS licensees to potential regulatory action.
A newly implemented ASIC instrument formalised the extension of the registration period, with all relevant providers, including time-share advisers, required to be registered by Feb. 16, excluding provisional relevant providers. ASIC said no further extensions will be granted beyond this date.
ASIC Commissioner Alan Kirkland (pictured above) stressed the gravity of compliance, highlighting that providing personal advice without registration is prohibited and carries significant penalties. Kirkland also expressed appreciation for AFS licensees who proactively registered their advisers and urged those who have not to do so promptly.
“After the revised deadline has passed, ASIC will begin a program to check compliance with this requirement and will take enforcement action where we identify advisers who have provided advice while unregistered,” he said in a media release.
For more information, read ASIC Corporations (Amendment) Instrument 2024/23.
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