Another annual fee for advisers
Financial advisers will have another annual fee to pay under the Government’s proposal for an annual financial adviser registration under its new disciplinary regime.
In its exposure draft legislation regarding the new regime, the Government said it proposed that a fee to register would be payable and that the registration would need to be renewed annually.
“This will be set in the Corporations (Fees) Regulations 2001. The Government will consult on these regulations at a later date,” it said.
“…Registration needs to be renewed annually. However, provided that the registration renewal form has been submitted by the due date, a financial adviser can continue to provide advice without needing to wait for ASIC [the Australian Securities Investments Commission] to confirm that the adviser’s registration has been renewed.”
The obligation for an adviser to be registered would sit with the licensee and if the adviser was the licence holder, the adviser would be registering themselves.
Licensees had between 1 January, 2022, until 1 January, 2023, to register existing advisers to be able to continue to provide advice.
To register, the licensee would need to submit a registration form to ASIC which would need to include:
- A declaration from the adviser that they are a fit and proper person;
- A declaration from the licensee that the person has met the education and training standards; and
- A declaration from the licensee that they are not aware of any reason why the adviser is not a fit and proper person. This is required to be based on information already available to the licensee and will not require the licensee to undertake additional investigation.
ASIC would then register the adviser on the Financial Advisers Register (FAR).
The Government noted if an adviser provided advice while unregistered, and their licensee had not revoked their authorisation, the licensee was subject to penalties.
“This places the onus on the licensee to register the adviser, or revoke their authorisation,” it said.
“If an adviser gives advice and the ‘adviser’ is not authorised by a licensee (or their authorisation has ceased) – then it is the adviser who is in breach.”
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
