Update on ASIC Financial Advisers Register

Update on ASIC Financial Advisers Register

The Government intends to establish a public register of financial advisers by 31 March 2015 to be managed by ASIC.

It is designed to allow consumers to find out information about their adviser and provide employers with a greater ability to assess an adviser’s suitability.

Who is caught?

The requirements only apply where the financial adviser:

  • is a natural person (not a corporation);
  • is authorised to provide personal advice:
    • to a retail client;
    • on any financial products other than:
      • basic banking products;
      • general insurance products;
      • consumer credit products (life or general); or
      • a combination of any of those products.

It will not catch insurance brokers who are:

  • only authorised to provide personal advice to wholesale clients;
  • not authorised to provide personal advice e.g those who can only provide retail clients or wholesale clients with general advice or no advice (ie dealing services only);
  • only authorised to provide personal advice to retail clients on excluded products (e.g general insurance products or life consumer credit insurance product).

It will catch insurance brokers authorised to provide personal advice to retail clients on:

  • all life insurance products other than life consumer credit insurance; and
  • discretionary risk financial products;
  • other products not excluded.

What information will be included on the register?

The following information will be provided on the register:

  • the financial adviser’s name;
  • if the financial adviser is an authorised representative, the authorised representative number given to the financial adviser by ASIC;
  • the financial adviser’s date of birth and place of birth.  This is for verification purposes only and will not be displayed on the register;
  • the name and the Australian financial services licence number of the licensee who authorises the financial adviser to provide advice;
  • if the financial adviser is sub-authorised by an authorised representative, the name and number of that authorised representative;
  • if applicable, the name of a person or persons who controls the licensee if the licensee is a body corporate and is authorised to provide personal advice in relation to relevant financial products to retail clients;
  • the recent advising history of the financial adviser (last five years history as a financial adviser).  Financial advisers will need to capture the period during which the adviser was a financial adviser including:
    • start date and end date;
    • name and number of the licensee; and
    • any authorised representative name and number if applicable;
    • the year in which the financial adviser first provided personal advice in relation to relevant financial products;
    • the financial products on which the financial adviser is authorised to provide advice; and
      • if applicable, a link from any ABN of the licensee, authorised representative or adviser to see the business names associated with these ABNs on the Australian Business Register.

ASIC will supply the information about any bans, disqualifications or enforceable undertakings entered into by the financial adviser.

The financial adviser will be given up to five spaces to:

  • list their qualifications – it needs to determine the most relevant.
  • for their memberships of professional bodies – it needs to determine the most relevant.

To provide licensees with additional time to gather the information, the initial release of the register in March 2015 won’t include:

  • an adviser’s qualifications;
  • training courses; and
  • professional bodies memberships.

This information will be added to the register between 23 and 30 May 2015.

What is the timing of the Financial Advisers Register?

The table below sets out the relevant dates and fee requirements for the register:

Date Action Fees
1 January – 30 March 2015 Licensees to select a “start date” between 1 January and 30 March 2015.  You do not need to tell ASIC of your selected ‘start date’.The start date selected by the licensee will be the date the licensee uses to set the cut-off date for the collection of information on themselves and their existing financial advisers.

The information provided to ASIC in the initial lodgement period from 9 March 2015 will only relate to, and be current for, existing financial advisers as at the start date selected by the licensee.

 N/A
9 – 30 March 2015 ASIC Connect available for licensees to lodge information on their existing Financial Advisers using the Appoint transaction.Information about qualifications and training courses and membership of professional bodies not to be included.

Information about persons who control a body corporate licensee to be notified in the same transaction.

 $43 per financial adviser. 

No fee to notify ASIC of persons who control a licensee.
30 March 2015 All initial lodgements to be completed.  N/A
31 March 2015 Financial Advisers register available from ASIC’s MoneySmart website. N/A
31 March 2015 to 22 May 2015 Licensees to notify ASIC of:(a)     financial advisers who became financial advisers after the selected start date, within 30 business days of 30 March 2015;

(b)     any new financial advisers who became financial advisers after 30 March 2015, within 30 business days of the appointment.

Information about qualifications and training courses and membership of professional bodies not to be included.

 $43 per financial adviser.
23 May to 30 May 2015 Licensees to notify ASIC of information about qualifications and training courses and membership of professional bodies relevant to the provision of financial services for all financial advisers already on the register. A maximum of 5 for each category. No fee
31 May 2015 onwards Notifications of any new appointments of financial advisers to include all categories of information. $43 per financial adviser.
31 May 2015 to 30 September 2015 Licensees to notify ASIC of any ‘important changes’ in relation to financial advisers on the register before 30 April 2015, within 30 business days of 30 April 2015.For important changes that occur after 30 April 2015, licensees to inform ASIC of any ‘important changes’ in relation to financial advisers on the register within 30 business days of the change.

Important changes are changes to the status of a financial adviser (i.e. if they cease being a financial adviser, or change licensees) and changes to the financial products on which the financial adviser can provide advice.

 No fee
1 October 2015 Any other changes in relation to details of a financial adviser on the register which changed prior to 30 September 2015 (other than important changes) must be notified within 30 business days of 1 October 2015. $29 per financial adviser.
1 October 2015 Licensees to lodge information about persons who started to control a body corporate licensee or ceased to control a body corporate licensee in the period from the start date to 30 September 2015 within 30 business days of 1 October 2015. No fee
1 October 2015 and ongoing Any changes to details of a financial adviser to be notified within 30 business days of the change. $29 per financial adviser.
1 October 2015 and ongoing Any changes to persons who start to or cease to control a body corporate licensee to be notified within 30 business days of the change. No fee.

 

Where can I get further information?

To assist licensees, ASIC has:

  • prepared a guidance document (see below), which sets out information about who the register will impact, the types of information that licensees will need to gather in preparation for the register and key dates relating to the register; and

 

  • developed a dedicated Financial Adviser Register webpage – www.asic.gov.au/far, that will be regularly updated with new information.

 

Licensees can subscribe to an update service available on the ASIC webpage to receive update emails about the register and can also send direct questions about the register to [email protected]