The Corporations Amendment (Register of Relevant Providers) Regulation 2015 and the Corporations (Fees) Amendment (Register of Relevant Providers) Regulation 2015 have been registered. The Regulations prescribe the information required to be notified to ASIC for the Register of Financial Advisers which is due to commence on 31 March 2015.
The Regulations deal with the obligations of financial services licensees to notify ASIC details of natural persons authorised to provide personal advice in relation to relevant financial products to retail clients (“relevant providers”). The persons will include authorised representatives, employees and director representatives of licensees.
The obligation does not apply to persons advising only on financial products which are basic banking products, general insurance products, consumer credit insurance, or a combination of any of these three categories.
The Regulation applies to individuals typically called ‘financial advisers or planners’, but also includes a wide range of advisers in related sectors, including stockbrokers, insurance brokers, accountants and some bank employees.
The scope does not capture individuals who advise wholesale clients exclusively.
Licensees are responsible for ensuring a notice in an ASIC prescribed form is lodged with ASIC within 30 business days of a person becoming a relevant provider.
There is an ongoing obligation to notify ASIC when there is a change in a matter for a relevant provider.
It is an offence to fail to notify ASIC: the penalty is 50 penalty units, which is currently $8,500.
Transition arrangements
Notices for existing relevant providers must be lodged containing their details between 9 March and 30 March 2015.
Licensees can choose a start date (ie a cut-off date) between 1 January 2015 and 30 March 2015 to which the notice applies. For individuals that become relevant providers after their licensee’s start date, this information must be lodged by the licensee within 30 business days.
A notice that is lodged between 9 March and 30 March 2015 should not include information on educational qualifications, training and professional association memberships.
