Licensees no longer required to notify ASIC of professional year arrangements

ASIC has announced that Australian Financial Services (AFS) licensees are no longer required to flag the professional year arrangement between themselves and a new financial adviser.

Licensees were previously required to notify the former Financial Adviser Standards and Ethics Authority (FASEA) within 30 days of a new adviser commencing their professional year.

Despite the change, ASIC said licensees are still required to notify the corporate regulator if they grant a new adviser accelerated professions through quarter one and or two and when they issue a final completion certificate of the new adviser’s professional year.

ASIC has also stated that it must assess the eligibility of new and foreign advisers sitting the financial year exam before they book.

New financial advisers will receive “further guidance” doing their professional year in the coming months.

The decision comes less than a month after ASIC confirmed that 882 advisers, who had attempted the exam at least twice before the end of 2021, have qualified for an extension until 30 September 2022.

ASIC is also conducting a review of the Financial Adviser Register (FAR) to ensure all advisers who did not pass the exam by 31 December 2021 and did not qualify for the extension have been updated to a “ceased” status.

In March, it was revealed that just over 30 per cent of candidates passed the February exam, with 73 per cent re-sitting the exam for at least the second time.

The next exams are set to go ahead between Thursday, 12 May, and Monday, 16 May.