ASIC will require no proof from advisers to prove they eligible for the experience pathway, just a written declaration, and it will be up to licensees to verify the veracity of the statement.
In guidance for the pathway released by ASIC on Wednesday morning, it stated no form has been prescribed by legislation and a declaration can be either a document “or an email”.
The legislation for the pathway outlines heavy civil and criminal penalties for advisers and their licensees for falsifying information putting further burden on licensees to verify information as required.
“A person who makes a written declaration is responsible for ensuring their written declaration does not contain false or misleading information,” the guidance said.
“Criminal and/or civil penalties may apply if false or misleading information is given by the person when making the declaration.”
An example of a written declaration from the guidance. Source: ASIC.
Declarations must be made by 1 January 2026, when the deadline to hold an appropriate tertiary degree commences.
The basic eligibility for the pathway is 10 years’ experience and a clean record and passing the adviser exam; but specifically, an adviser must have been a relevant provider for a cumulative 3650 days between the start of 2007 and the end of 2021.
However, a loophole on the clean record requirement means any bans or disqualifications after the end of 2021 aren’t factored into eligibility.
“As at 31 December 2021, the relevant provider has never been banned or disqualified by ASIC, or given a court enforceable undertaking to ASIC,” the guidance said.
Licensees have 30 business days to notify ASIC of a declaration, or 30 days from 1 July 2024 if a declaration is made before the start of the upcoming financial year.
While the experience pathway presents a benefit for thousands of advisers who can avoid committing time and money to pursuing education, the bill presented the unintended consequences of killing demand for the tertiary sector that had to build programs in support of the advice industry which, will further limit options for potential new entrants.
The government has also sought to simplify the education requirements to help attract new entrants, with the Joint Association Working Group presenting an option to Treasury that would help better recognise specialities.
Minister for Financial Services Stephen Jones proposed the experience pathway in late 2021 when still in opposition and the policy became law in September 2023 after Labor came into government.
