ASIC has called AFSLs to correct records regarding their financial advisers on the Financial Advisers Register having discovered errors relating to qualifications and training courses.
From 1 August 2024, the regulator will commence a compliance program to ensure that the information recorded on the FAR about approved qualifications is correct and will consider enforcement action where necessary.
This will remain a key focus for ASIC in the lead up to 1 January 2026, when all financial advisers must comply with the qualification standard, either by completing an approved qualification, by completing qualifications the government has determined to be equivalent to an approved qualification for existing advisers, or by accessing the experienced provider pathway.
ASIC identified errors such as qualifications being marked as ‘approved’ under the education standard when they were in fact bridging courses or professional designations (i.e. certified financial planner).
Furthermore, some of the qualifications marked as ‘approved’ were not approved qualifications under the law (examples include: the financial adviser exam and RG146 training/qualifications).
ASIC also discovered incorrect contact information about the financial advisers of AFSLs and urges immediate action to check and correct all inaccurate information.
AFSLs are urged to immediately check all the information recorded about their financial advisers on the FAR, with a particular focus on the adviser’s approved qualification(s), ability to provide tax (financial) advice services, business address and telephone number.
It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure that the information provided to ASIC is true and correct.
It is also an offence to fail to update the FAR within 30 business days of a financial adviser’s details changing.
From 1 July, the Financial Services Register will no longer display whether a financial adviser’s training meets the requirement of an ‘approved’ qualification.