TheAustralian Securities and Investments Commission(ASIC) will not be extending the July 1, 2002 deadline to comply with Policy Statement (PS) 146.
The industry watchdog yesterday released a set of guidelines for the industry in response to queries on the education and training process to comply under PS 146, and was clear with its message.
“ASIC will not be extending the deadline. Licence holders may be in breach of their obligations to adequately train representatives if any of their proper authority holders or authorised representatives are not in compliance by the due date,” the guidelines state.
However, the association recognised some advisers would still be waiting confirmation of results past July 1, and stated they would not consider the licence holder to be in breach of training obligations.
Similarly, ASIC has taken into account advisers who have commenced, but not concluded their training requirements and states licensees will not be in breach of training obligations as long as a PS 146 compliant adviser is in attendance at all client meetings where retail advice is provided, or signs off any written financial plan or advice provided to a retail client.
“In all circumstances, the licensee must ensure that it has in place supervision and monitoring measures to ensure that either one or both takes place,” the statement says.
ASIC also says its approach will not be “overly-bureaucratic” to “well-intentioned errors borne of confusion about the requirements of PS146”, but expects the industry to be compliant before deadline.
“Where the licensee has demonstrated to ASIC a commitment to compliance, and has such systems in place to monitor compliance, then ASIC will not take a punitive approach to minor breaches of PS146.”
