Advisers urged to join ASIC's Financial Advisers Register by 31 December

The Australian Securities and Investments Commission (ASIC) has issued a call to currently authorised financial advisers to make sure they are on its Financial Advisers Register by the end of the year, ahead of the introduction of the new education standards on 1 January.

Professional standards reforms for financial advisers were introduced in March 2017, to raise the education, training and ethical standards of people providing personal advice to retail clients on more complex financial products.

“Under the reforms, only financial advisers who were authorised at any time between 1 January 2016 and 1 January 2019, and who are not prohibited from providing advice on 1 January 2019, will be recognised as an ‘existing provider’”, ASIC explained.

Financial advisers can demonstrate they are an ‘existing provider’ by having a status of ‘current’ on the Financial Advisers Register at any time in this period.

“Without recognition as an ‘existing provider’, financial advisers will be treated as ‘new entrants’ to the industry,” ASIC advised.

“From 1 January 2019, new entrants will have to meet new education and training requirements to be able to provide advice to clients. They will have to complete an approved qualification and pass an exam before they can be authorised to provide advice, and they will also have to complete a year of supervised work and training.”