The
Australian Securities and Investments Commission (ASIC) has issued a reminder
to Australian Financial Services (AFS) licensees about upcoming notification
requirements for the experienced provider pathway for financial advisers.
In addition,
the market watchdog called for stronger supervision of business communications
by market intermediaries.
ASIC Sets Deadline for
Financial Advisers’ Experienced Provider Pathway Notifications
Starting
July 1, 2024, AFS licensees will be required to notify ASIC when they receive a
written declaration from a financial adviser eligible for the experienced
provider pathway. This pathway allows experienced advisers to meet
qualification standards without additional education.
Licensees
will have 30 business days to notify ASIC after receiving a declaration. For
declarations received before July 1, the 30-day countdown begins on that date. Notifications can be submitted through ASIC Connect’s appointment and maintenance functions.
The
experienced provider pathway, introduced on September 21, 2023, allows eligible
financial advisers to satisfy qualifications and professional year standards by
making a written declaration. Advisers must provide this declaration to their
AFS licensee as soon as practicable.
ASIC has
provided guidance in the information
sheet on how licensees can verify an adviser’s eligibility for the pathway.
However, the regulator noted that the Financial Advisers Register will not
display information about an adviser’s use of this pathway.
“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 had a clean disciplinary record as at 31
December 2021,” ASIC explained in the Information Sheet.
Self-licensed
financial advisers who qualify for the experienced provider pathway must also
adhere to these notification requirements, with similar deadlines applying to
their declarations.
ASIC warned
that failure to comply with these notification timeframes could result in
criminal or civil penalties.
Last month,
in a separate initiative, the Australian regulator also announced the launch of its
new Professional Registers Search (PRS) tool, scheduled to become operational
in late June 2024. The PRS is designed to offer users enhanced search
functionality, allowing them to look up licenses and registrations across
multiple register databases with a single query.
ASIC Tightens Oversight on
Market Intermediaries
In a
separate announcement, ASIC called on market intermediaries to strengthen their
supervision of business communications. The regulator released another
information sheet, addressing concerns about the use of unmonitored and
encrypted communication channels in business dealings.
The document
provides practical guidance for investment banks, market participants,
securities dealers, and corporate advisers on embedding supervisory
arrangements for business communications. It emphasizes the importance of
preventing, detecting, and promptly addressing misconduct and contraventions of
financial services laws.
“Bankers,
dealers and market participants have important roles as gatekeepers to
Australia’s financial markets and stewards of market integrity,” said Simone
Constant, the ASIC Commissioner.
Additionally,
Joe Longo, the Chairman of ASIC, has called for reforms in the regulation of artificial intelligence
(AI) within the finance sector. He warned that existing frameworks might not be
sufficient to keep up with the rapid pace of technological advancements.
The
Australian Securities and Investments Commission (ASIC) has issued a reminder
to Australian Financial Services (AFS) licensees about upcoming notification
requirements for the experienced provider pathway for financial advisers.
In addition,
the market watchdog called for stronger supervision of business communications
by market intermediaries.
ASIC Sets Deadline for
Financial Advisers’ Experienced Provider Pathway Notifications
Starting
July 1, 2024, AFS licensees will be required to notify ASIC when they receive a
written declaration from a financial adviser eligible for the experienced
provider pathway. This pathway allows experienced advisers to meet
qualification standards without additional education.
Licensees
will have 30 business days to notify ASIC after receiving a declaration. For
declarations received before July 1, the 30-day countdown begins on that date. Notifications can be submitted through ASIC Connect’s appointment and maintenance functions.
The
experienced provider pathway, introduced on September 21, 2023, allows eligible
financial advisers to satisfy qualifications and professional year standards by
making a written declaration. Advisers must provide this declaration to their
AFS licensee as soon as practicable.
ASIC has
provided guidance in the information
sheet on how licensees can verify an adviser’s eligibility for the pathway.
However, the regulator noted that the Financial Advisers Register will not
display information about an adviser’s use of this pathway.
“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 had a clean disciplinary record as at 31
December 2021,” ASIC explained in the Information Sheet.
Self-licensed
financial advisers who qualify for the experienced provider pathway must also
adhere to these notification requirements, with similar deadlines applying to
their declarations.
ASIC warned
that failure to comply with these notification timeframes could result in
criminal or civil penalties.
Last month,
in a separate initiative, the Australian regulator also announced the launch of its
new Professional Registers Search (PRS) tool, scheduled to become operational
in late June 2024. The PRS is designed to offer users enhanced search
functionality, allowing them to look up licenses and registrations across
multiple register databases with a single query.
ASIC Tightens Oversight on
Market Intermediaries
In a
separate announcement, ASIC called on market intermediaries to strengthen their
supervision of business communications. The regulator released another
information sheet, addressing concerns about the use of unmonitored and
encrypted communication channels in business dealings.
The document
provides practical guidance for investment banks, market participants,
securities dealers, and corporate advisers on embedding supervisory
arrangements for business communications. It emphasizes the importance of
preventing, detecting, and promptly addressing misconduct and contraventions of
financial services laws.
“Bankers,
dealers and market participants have important roles as gatekeepers to
Australia’s financial markets and stewards of market integrity,” said Simone
Constant, the ASIC Commissioner.
Additionally,
Joe Longo, the Chairman of ASIC, has called for reforms in the regulation of artificial intelligence
(AI) within the finance sector. He warned that existing frameworks might not be
sufficient to keep up with the rapid pace of technological advancements.
This post is originally published on FINANCEMAGNATES.
