ASIC has released Information Sheets 276 and 277 to provide guidance to financial advisers and AFS licensees about the new requirement for financial advisers to be registered, following the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 receiving Royal Assent on 27 November 2023.

From 1 February 2024, financial advisers, excluding provisional relevant providers, who provide personal advice to retail clients on relevant financial products (Relevant Providers) must be registered with ASIC. This includes time-share advisers.

• Information Sheet 276 FAQs: Registration of Relevant Providers (INFO 276) provides guidance to AFS licensees and Relevant Providers about registration requirement and process, registrations ceasing and multiple registrations.
• Information Sheet 277 Registration of Relevant Providers: Guidance on Making Declarations (INFO 277) provides guidance to AFS licensees about the declarations they are required to make when applying to register their Relevant Providers.

AFS licensees can apply to register their Relevant Providers using ASIC Connect and are encouraged to do so as early as possible to ensure their Relevant Providers are registered before 1 February 2024.

From 1 February 2024, unregistered Relevant Providers who provide personal advice to retail clients on relevant financial products, and the AFS licensee(s) that authorised the Relevant Provider at the relevant time, will be breaking the law. It is crucial that AFS licensees and Relevant Providers understand their obligations in relation to Relevant Provider registration.

ASIC will host two webinars to provide more information to AFS licensees and Relevant Providers about the new registration requirement.

• December 6, 2023: Overview of the registration requirement
• December 7, 2023: Practical guide on how to register a Relevant Provider

Background

The requirement for financial advisers to be registered was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 in response to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. It is a new requirement that is separate to the pre-existing requirement for an AFS licensee to appoint a Relevant Provider to the Financial Advisers Register once they have been authorised.

ASIC is Australia’s corporate, markets and financial services regulator.