Registration of relevant providers: Guidance on making declarations
This is Information Sheet 277 (INFO 277). It provides guidance for Australian financial services (AFS) licensees on submitting an application for registration with ASIC, and the declarations they are required to make when applying to register their relevant providers with ASIC. AFS licensees can apply to register their relevant providers under the new ‘Registration of relevant providers’ transaction on ASIC Connect.
From 16 February 2024 all relevant providers must be registered with ASIC to be able to provide personal advice to retail clients about relevant financial products. This includes relevant providers who only provide advice about time-sharing schemes (time-share advisers). This does not include provisional relevant providers who cannot be registered.
This information sheet includes specific guidance for AFS licensees on:
submitting the registration application form
making the ‘fit and proper’ declarations, and
making the ‘professional standards’ declarations.
Note: For more information about the registration requirement for relevant providers and their AFS licensee(s), see Information Sheet 276 FAQs: Registration of relevant providers (INFO 276).
Who is a relevant provider?
A ‘relevant provider’ is an individual who is:
either:
an AFS licensee, or
an authorised representative, employee or director of a financial services licensee (or a related body corporate of a financial services licensee), and
authorised to provide personal advice to retail clients on relevant financial products.
Relevant providers are sometimes referred to as ‘financial advisers’ within industry.
This information sheet uses the following terms to describe specific categories of relevant provider:
An ‘existing provider’ is a person who was:
a relevant provider at any point between 1 January 2016 and 1 January 2019, and
on 1 January 2019, not banned, disqualified or subject to an enforceable undertaking which prevents them from providing personal advice or a financial service.
A person may also be an existing provider if they:
provided personal advice to retail clients on relevant financial products overseas between 1 January 2016 and 1 January 2019, and
on 1 January 2019, were not prohibited under the law of the foreign country from providing such advice.
An ‘experienced provider’ is a person who:
was a relevant provider for at least 10 years (that is, 3,650 days – whether consecutive or not) during the period 1 January 2007 to 31 December 2021, and
before 31 December 2021 had never:
been banned or disqualified under Division 8 of Part 7.6 of the Corporations Act 2001 (Corporations Act) as in force at that time, or
given an undertaking under section 93AA or section 171E of the Australian Securities and Investments Commission Act 2001 as in force at that time.
A ‘limited-service time-sharing adviser’ is a relevant provider who only provides advice about time-share schemes. In this information sheet, we refer to limited-service time-sharing advisers as ‘time-share advisers’.
A ‘provisional relevant provider’ is a relevant provider who is undertaking their year of work and training in accordance with the professional standards for relevant providers. Sometimes a provisional relevant provider is referred to as a ‘provisional financial adviser’.
A ‘qualified tax relevant provider’ is a relevant provider who:
A ‘self-licensed relevant provider’ is a relevant provider who holds an AFS licence in their personal capacity, rather than through a corporate structure.
‘Personal advice’, when referred to in the context of a relevant provider, means personal advice provided to retail clients on relevant financial products.
‘Relevant financial products’ are financial products other than basic banking products, general insurance products, consumer credit insurance or a combination of any of these products.
Submitting the registration application form
Only AFS licensees can submit an application to register a relevant provider.
If you are an AFS licensee who is not a self-licensed relevant provider, it is important you select, ‘no’ to the question, ‘Is the relevant provider also the AFS licensee submitting the registration application?’ This will ensure that the system displays the correct declarations.
If you are an AFS licensee who is a self-licensed relevant provider, it is important you select ‘yes’ to the question, ‘Is the relevant provider also the AFS licensee submitting the registration application?’ In this case, you will submit the application in your capacity as the registering AFS licensee and each of the declarations will relate to you in your capacity as a relevant provider.
Making the fit and proper declarations
As part of the application to register a relevant provider, the registering AFS licensee must make certain fit and proper declarations.
For registering AFS licensees who are not self-licensed relevant providers, these declarations include whether the registering AFS licensee:
has received a declaration from the relevant provider that the relevant provider is a fit and proper person to provide personal advice to retail clients on relevant financial products (see Question 1), and
is aware of any reason why the relevant provider may not be a fit and proper person to provide personal advice to retail clients on relevant financial products (see Question 2).
If you are an AFS licensee who is a self-licensed relevant provider, you must make the fit and proper declarations on your own behalf: see Question 3.
When determining whether a relevant provider is a fit and proper person to provide personal advice, particular matters must be taken into account: see Question 4. This requirement applies to all registering AFS licensees (including AFS licensees who are self-licensed relevant providers).
Note: If you are an AFS licensee who is a self-licensed relevant provider, see Question 3.
As the registering AFS licensee, you must declare whether you have received a declaration from the relevant provider that they are a fit and proper person to provide personal advice.
If you have not received a declaration from the relevant provider that they are a fit and proper person to provide personal advice, you must declare: ‘I have not received a declaration from the relevant provider that they are a fit and proper person to provide personal advice to retail clients on relevant financial products’. The application to register the relevant provider will not proceed.
If you have received a declaration from your relevant provider that they are a fit and proper person to provide personal advice, you must declare: ‘I have received a declaration from the relevant provider that they are a fit and proper person to provide personal advice to retail clients on relevant financial products’.
As the registering AFS licensee, you are not required to comment on the factors that went into the relevant provider’s assessment of their fitness and propriety to provide personal advice.
Information for relevant providers making this declaration to their registering AFS licensee
Relevant providers must make a declaration to their registering AFS licensee that they are a fit and proper person to provide personal advice. Without this declaration, the registering AFS licensee cannot declare that it has ‘received a declaration from the relevant provider that they are a fit and proper person to provide personal advice to retail clients on relevant financial products’, and the application for registration will not proceed.
In making this declaration, relevant providers must take into account the matters set out in Question 4.
The form of the declaration given by the relevant provider to the AFS licensee is a matter for the relevant provider and their registering AFS licensee to determine. There is no prescribed form.
Note: If you are an AFS licensee who is a self-licensed relevant provider, see Question 3.
As the registering AFS licensee, you must declare whether you are aware of any reason why the relevant provider might not be a fit and proper person to provide personal advice, taking into account the matters set out in Question 4.
You must consider all the information you hold about the relevant provider at the time you make the declaration. You are not required to undertake further investigations before making this declaration.
Making a declaration that you are aware of reasons why a relevant provider may not be fit and proper is not a reason for ASIC to refuse to register the relevant provider.
If you declare that you are aware of a reason why the relevant provider might not be a fit and proper person to provide personal advice, you will have an opportunity to provide further details in the application process. You are not required to explain your reasons when completing the registration application form.
To be registered with ASIC, self-licensed relevant providers must make a declaration that they are a fit and proper person to provide personal advice.
As a self-licensed relevant provider, you must take into account all the information you hold at the time you make the declaration, including the matters set out in Question 4.
If you declare that you are not a fit and proper person to provide personal advice, your registration application will not proceed.
When making a declaration about whether the relevant provider is a fit and proper person to provide personal advice, the person making the declaration must consider all relevant matters they are aware of. This includes whether the relevant provider has:
had an AFS licence, an Australian credit licence, or a registration under the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (National Credit Act) suspended or cancelled
ever had a banning or disqualification order under Division 8B of Part 7.6 of the Corporations Act, or a banning or disqualification order under Part 2-4 of the National Credit Act, made against them
ever been disqualified under the Corporations Act, or any other law of the Commonwealth or of a state or territory, from managing a corporation
ever been banned from engaging in a credit activity (within the meaning of the National Credit Act) under a law of a state or territory
ever been linked to a refusal or failure to give effect to a determination made by the Australian Financial Complaints Authority (within the meaning of section 910C of the Corporations Act)
ever been an insolvent under administration
been convicted of an offence in the last 10 years
been the subject of an instrument made by the Financial Services and Credit Panel (FSCP) in the last 10 years
received an infringement notice from the FSCP (unless the infringement notice was withdrawn) in the last 10 years, or
been the subject of any other matter prescribed by the Corporations Regulations 2001.
It is a matter for AFS licensees to determine whether the relevant provider is fit and proper to provide personal advice based on the matters they are aware of at the time they make the declaration.
Making professional standards declarations
Regardless of whether the application is being submitted by an AFS licensee or a self-licensed relevant provider, every application for registration must contain declarations about the relevant provider’s compliance with the professional standards requirements.
Note: The content of these declarations will depend on whether the person being registered is a relevant provider, a time-share adviser, a relevant provider who is relying on the experienced provider pathway, or a relevant provider who is also an existing provider. You may need to make inquiries with the relevant provider you are applying to register to ensure that you make the appropriate declarations, and that the declarations are accurate.
the provision of tax (financial) advice services (see Question 8).
To meet the qualifications standard, a relevant provider must have completed an approved degree or an equivalent qualification approved by the Minister, or a foreign qualification approved by the Minister.
Relevant providers who are relying on the experienced provider pathway
A relevant provider can rely on the experienced provider pathway to meet the qualifications standard if they meet the criteria of an ‘experienced provider’ (see the definition of an experienced provider in ‘Who is a relevant provider?’ above). A relevant provider who did not pass the financial adviser exam by the exam cut-off day that applies to them, but was still authorised to provide personal advice to retail clients on relevant financial products on their exam cut-off day cannot rely on the experienced provider pathway, even if they have subsequently passed the exam.
Note: The exam cut-off day is either 1 January 2022 or 1 October 2022 for relevant providers who qualified for the exam extension.
To access the experienced provider pathway, a relevant provider must make a written declaration confirming that they satisfy the definition of an experienced provider. The relevant provider should provide you as the authorising AFS licensee with a copy of their declaration.
If your application is for a relevant provider who is relying on the experienced provider pathway, you should only declare that the qualifications standard has been met if you have verified that the relevant provider is eligible to rely on the experienced provider pathway by meeting the criteria in Table 1.
Table 1: How to verify that a person is eligible to access the experienced provider pathway
Requirement
How to verify
The person was a relevant provider for at least 3,650 cumulative days during the period 1 January 2007 to 31 December 2021.
You may wish to check the financial advisers register or, for authorisations relating to non-employee representatives that pre-date the establishment of this register, the authorised representatives professional register. You may wish to seek appropriate documentation from the relevant provider and/or their previous employer(s) evidencing their previous authorisation(s) as a relevant provider as an alternative or in addition to checking these registers.
As at 31 December 2021, the relevant provider has never been banned or disqualified by ASIC, or given a court enforceable undertaking to ASIC.
passed the exam by the exam cut-off day that applies to them, or
if they did not pass the exam by their exam cut-off day – had their authorisation to provide personal advice ceased before their exam cut-off day, and passed the exam before being re-authorised to provide personal advice.
See the definition of ‘exam cut-off day’ in the note above. You may wish to check the financial advisers register to see whether the relevant provider’s authorisation to provide personal advice was ceased before their exam cut-off day.
If you are not satisfied that the relevant provider is eligible to rely on the experienced provider pathway, you must consider whether the relevant provider meets the qualifications standard on another basis. See the following sections for details about relevant providers who are not relying on the experienced provider pathway.
Note: From 1 July 2024, the authorising AFS licensee(s) of an experienced provider are required to separately notify ASIC via the appoint (add) and maintain (update) function on ASIC Connect that they have received a copy of a written declaration by lodging a notice, where the relevant provider from whom they have received the declaration is eligible to access the experienced provider pathway. See Information Sheet 281 FAQs: Relevant providers – Accessing the experienced provider pathway (INFO 281) for further guidance on this requirement.
Relevant providers who are not existing providers and are not relying on the experienced provider pathway
From 1 January 2019, all relevant providers who are not existing providers and are not relying on the experienced provider pathway are required to have complied with the qualifications standard before they can be authorised to provide personal advice. If the relevant provider has obtained an approved degree, you must declare that the qualifications standard has been met. If the relevant provider has not obtained an approved degree, you must declare that the qualifications standard has not been met and the registration application will not proceed.
Relevant providers who are existing providers but are not relying on the experienced provider pathway
If your application is for an existing provider who is not relying on the experienced provider pathway, you will need to consider how the professional standards apply to that person: see Table 2.
Table 2: How the qualifications standard applies to an existing provider who is not relying on the experienced provider pathway
Condition
Application of qualifications standard
The existing provider passed the financial adviser exam before the exam cut-off day that applies to them.
The qualifications standard does not apply until 1 January 2026 and until that date you may state that the qualifications standard does not apply.
If, before 1 January 2026, the existing provider has obtained an approved degree, you must declare that the qualifications standard has been met.
The existing provider did not pass the financial adviser exam by the exam cut-off day that applies to them, and they remained authorised to provide personal advice at the start of that exam cut-off day.
The qualifications standard applies to the existing provider and the existing provider must have obtained an approved degree before they can be registered.
If the existing provider has obtained an approved degree, you must declare that the qualifications standard has been met.
If the existing provider has not obtained an approved degree, you must declare that the qualifications standard has not been met and the registration application will not proceed.
The existing provider was on a career break (i.e. they were not authorised to provide personal advice) immediately before the exam cut-off day that applies to them.
The qualifications standard does not apply until 1 January 2026 and until that date you may state that the qualifications standard does not apply.
If, before 1 January 2026, the existing provider has obtained an approved degree, you must declare that the qualifications standard has been met.
Note: For more information on how the professional standards apply to existing providers, see Information Sheet 260 FAQs: Timeframe for passing the financial adviser exam (INFO 260) and the Financial advisers quick reference guide.
Time-share advisers
Time-share advisers are not required to comply with the professional standards for relevant providers. As such, if the relevant provider you are applying to register is a time-share adviser, you must state that the qualifications standard does not apply.
To meet the exam standard, a relevant provider must have passed the financial adviser exam.
Relevant providers who are not time-share advisers
All relevant providers (except for time-share advisers) must have passed the financial adviser exam to be eligible to be registered.
If the relevant provider you are applying to register has passed the financial adviser exam, you must declare that they have met the exam standard. Otherwise, you must declare that they have not met the exam standard and the registration application will not proceed.
Time-share advisers
Time-share advisers are not required to comply with the professional standards for relevant providers. As such, if the relevant provider you are applying to register is a time-share adviser, you must state that the exam standard does not apply.
Generally, to meet the professional year standard, a relevant provider must have completed a professional year over the course of at least one year consisting of a minimum of 1,600 total hours experience, of which at least 100 hours was structured training. In addition, the relevant provider must have received a final completion certificate from their supervisor and authorising AFS licensee in accordance with the Corporations (Work and Training Professional Year Standard) Determination 2018, which sets out the requirements that apply to the professional year.
Relevant providers who are relying on the experienced provider pathway
A relevant provider can rely on the experienced provider pathway to meet the professional year standard if they meet the criteria of an ‘experienced provider’ (see the definition of an experienced provider in ‘Who is a relevant provider?’ above). A relevant provider who did not pass the financial adviser exam by the exam cut-off day that applies to them, but was still authorised to provide personal advice to retail clients on relevant financial products on their exam cut-off day cannot rely on the experienced provider pathway, even if they have subsequently passed the exam.
To access the experienced provider pathway, a relevant provider must make a written declaration confirming that they satisfy the definition of an experienced provider. The relevant provider should provide you as the authorising AFS licensee with a copy of their declaration.
If your application is for a relevant provider who is relying on the experienced provider pathway, you should only declare that the professional year standard has been met if you have verified that the relevant provider is eligible to rely on the experienced provider pathway by meeting the criteria in Table 3.
Table 3: How to verify that a person is eligible to access the experienced provider pathway
Requirement
How to verify
The person was a relevant provider for at least 3,650 cumulative days during the period 1 January 2007 to 31 December 2021.
You may wish to check the financial advisers register or, for authorisations relating to non-employee representatives that pre-date the establishment of this register, the authorised representatives professional register. You may wish to seek appropriate documentation from the relevant provider and/or their previous employer(s) evidencing their previous authorisation(s) as a relevant provider as an alternative or in addition to checking these registers.
As at 31 December 2021, the relevant provider has never been banned or disqualified by ASIC, or given a court enforceable undertaking to ASIC.
passed the exam by the exam cut-off day that applies to them, or
if they did not pass the exam by their exam cut-off day – had their authorisation to provide personal advice ceased before their exam cut-off day, and passed the exam before being re-authorised to provide personal advice.
See the definition of ‘exam cut-off day’ in Question 5. You may wish to check the financial advisers register to see whether the relevant provider’s authorisation to provide personal advice was ceased before their exam cut-off day.
If you are not satisfied that the relevant provider is eligible to rely on the experienced provider pathway, you must consider whether the relevant provider meets the professional year standard on another basis. See the following sections for details about relevant providers who are not relying on the experienced provider pathway.
Note: From 1 July 2024, the authorising AFS licensee(s) of an experienced provider are required to separately notify ASIC via the appoint (add) and maintain (update) functions on ASIC Connect that they have received a copy of a written declaration by lodging a notice, where the relevant provider from whom they have received the declaration is eligible to access the experienced provider pathway. See INFO 281 for further guidance on this requirement.
Relevant providers who are not existing providers and are not relying on the experienced provider pathway
From 1 January 2019, relevant providers (except for time-share advisers) who are not existing providers and not relying on the experienced provider pathway are required to have completed a professional year that meets the professional year standard before they can be authorised to provide personal advice. If the relevant provider has completed the professional year, you must declare that the professional year standard has been met. If the relevant provider has not completed the professional year, you must declare that the professional year standard has not been met and the registration application will not proceed.
Relevant providers who are existing providers but are not relying on the experienced provider pathway
If your application is for an existing provider who is not relying on the experienced provider pathway, you will need to consider how the professional year standard applies to that person: see Table 4.
Table 4: How the professional year standard applies to an existing provider who is not relying on the experienced provider pathway
Condition
Application of professional year standard
The existing provider passed the financial adviser exam before the exam cut-off day that applies to them.
The professional year standard does not apply, and the existing provider does not need to complete a professional year.
You may state that the professional year standard does not apply. Alternatively, if the existing provider has completed a professional year, you must declare that the professional year standard has been met.
The existing provider did not pass the financial adviser exam by the exam cut-off day that applies to them, and they remained authorised to provide personal advice on that exam cut-off day.
The professional year standard applies to the existing provider, and they must have completed a professional year before they can be registered.
If the existing provider has completed their professional year, you must declare that the professional year standard has been met.
If the existing provider has not completed their professional year, you must declare that the professional year standard has not been met and the registration application will not proceed
The existing provider was on a career break (i.e. they were not authorised to provide personal advice) immediately before the exam cut-off day that applies to them.
In most circumstances, the existing provider is not required to complete a professional year and you may state that the professional year standard does not apply: see INFO 260.
Alternatively, if the existing provider has completed a professional year before being registered as a relevant provider, you must declare that the professional year standard has been met.
Time-share advisers are not required to comply with the professional standards for relevant providers. As such, if the relevant provider you are applying to register is a time-share adviser, you should state that the professional year standard does not apply.
If the relevant provider you are applying to register currently provides, or will provide, tax (financial) advice services, they must meet the definition of a qualified tax relevant provider.
Who is a qualified tax relevant provider?
A ‘qualified tax relevant provider’ is a relevant provider who:
is a registered tax agent, and/or
has met the requirements, if any, made by the Minister pursuant to section 921BB of the Corporations Act – these requirements are currently set out in the Relevant Providers Determination.
Generally, the Relevant Providers Determination requires relevant providers to have completed specified courses in commercial law and taxation law. Importantly, relevant providers who meet the following criteria are exempt, either permanently or temporarily, from having to complete the specified courses and are taken to be qualified tax relevant providers.
Table 5: Circumstances under which relevant providers are exempt from having to complete the specified courses and taken to be qualified tax relevant providers
Category
Circumstances
Exemption
Relevant providers who are registered tax agents
The individual is:
a relevant provider, and
a registered tax agent with the Tax Practitioners Board.
Exempt from having to complete the specified courses as the relevant provider is taken to be a qualified tax relevant provider.
If the relevant provider ceases to be a registered tax agent, they will need to complete the specified courses in commercial law and taxation law before providing tax (financial) advice services.
Relevant providers who were registered as individual tax (financial) advisers immediately before 1 January 2022
The individual was:
a relevant provider immediately before 1 January 2022, and
registered as an individual tax (financial) adviser with the Tax Practitioners Board immediately before 1 January 2022.
Permanently exempt from having to complete the specified courses as the relevant provider is taken to be a qualified tax relevant provider from 1 January 2022.
Relevant providers who had a pending registration application as an individual tax (financial) adviser immediately before 1 January 2022 that was subsequently approved
The individual:
was a relevant provider immediately before 1 January 2022
applied to be registered as an individual tax (financial) adviser with the Tax Practitioners Board before 1 January 2022, and
had their application approved after 1 January 2022.
Permanently exempt from having to complete the specified courses as the relevant provider is taken to be a qualified tax relevant provider from the date the Tax Practitioners Board approved the application.
Relevant providers who completed approved commercial law and taxation law courses before 1 January 2022
Permanently exempt from having to complete the specified courses as the relevant provider is taken to be a qualified tax relevant provider from 1 January 2022.
Existing providers who were relevant providers immediately before 1 January 2022
The individual:
was a relevant provider immediately before 1 January 2022, and
passed the financial adviser exam before the exam cut-off day that applies to them.
Temporarily exempt from having to complete the specified courses as the relevant provider and may provide tax (financial) advice services until 31 December 2025 without having completed the specified courses.
All other relevant providers
The individual is a relevant provider who doesn’t fall under any of the circumstances above.
Not exempt from having to complete the specified courses.
The relevant provider is required to complete the specified courses in commercial law and taxation law before providing tax (financial) advice services.
Note: For more information, see Information Sheet 268 FAQs: Relevant providers who provide tax (financial) advice services (INFO 268).
Completing declarations about the provision of tax (financial) advice services
You will need to consider how the circumstances in Table 6 apply to your declaration about the relevant provider you are registering.
Table 6: How the relevant provider’s circumstances apply to the tax (financial) advice services declaration
Circumstances
Declaration
The relevant provider:
is exempt, either permanently or temporarily, from having to complete the specified courses in commercial law and tax law, and
currently provides, or intends to provide, a tax (financial) advice service.
You must declare that the relevant provider provides, or intends to provide, a tax (financial) advice service, and is a qualified tax relevant provider as defined in section 910A of the Corporations Act.
The relevant provider:
has completed the specified courses in commercial law and taxation law, and
currently provides, or intends to provide, a tax (financial) advice service.
You must declare that the relevant provider provides, or intends to provide, a tax (financial) advice service, and is a qualified tax relevant provider as defined in section 910A of the Corporations Act.
The relevant provider:
is not exempt from having to complete the specified courses in commercial law and tax law
has not completed the specified courses in commercial law and taxation law, and
currently provides, or intends to provide, a tax (financial) advice service.
You must declare that the relevant provider provides, or intends to provide, a tax (financial) advice service, and is not a qualified tax relevant provider as defined in section 910A of the Corporations Act. The registration application will not proceed if you make this declaration.
The relevant provider does not currently provide, and does not intend to provide, a tax (financial) advice service, regardless of whether they are also a qualified tax relevant provider.
You must declare that the relevant provider does not provide, and is not to provide, a tax (financial) advice service.
Note: A relevant provider’s ability to provide tax (financial) advice services is not recorded on the Financial Advisers Register when declarations about the provision of tax (financial) advice services are completed as part of an application for registration. This is captured in the appoint (add) and maintain (update) functions on ASIC Connect. There is no cost to update this information for the first time. It is the responsibility of AFS licensees to ensure that the information recorded on the Financial Advisers Register is correct. For further information, see Information Sheet 268 FAQs: Relevant providers who provide tax (financial) advice services (INFO 268).
Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. We encourage you to seek your own professional advice to find out how the applicable laws apply to you, as it is your responsibility to determine your obligations.
You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases, your particular circumstances must be taken into account when determining how the law applies to you.
Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.
