Following the commencement of the registration requirement on 16 February 2024, most financial advisers (known as relevant providers) have been registered with the Australian Securities and Investments Commission (ASIC) and can legally provide personal advice to retail clients in relation to relevant financial products.
While most relevant providers are currently registered, ASIC reminds AFS licensees and relevant providers of the importance of complying with the registration obligation on an ongoing basis.
Both AFS licensees and relevant providers should ensure that they understand the circumstances where new registration is required. AFS licensees must register their relevant providers:
- after they authorise and appoint an adviser to the Financial Advisers Register,
- when they appoint an adviser who has moved from another AFS licensee,
- when an adviser changes roles from a ‘provisional relevant provider’ to a ‘relevant provider’, and
- when an adviser is dually authorised, and the adviser’s authorisation with their registering AFS licensee ceases.
From 16 February 2024, unregistered relevant providers who provide personal advice to retail clients in relation to relevant financial products, together with their AFS licensee(s), will be in breach of the law and face potential regulatory action.
