Monday 16th May 2022
Professional Year reporting reduced
After a tumultuous few years that have seen reporting, compliance and information gathering requirements reach extreme levels, ASIC appeared to offer some respite this week.
After a tumultuous few years that have seen reporting, compliance and information gathering requirements reach extreme levels, ASIC appeared to offer some respite this week.
The advice regulator announced that Australian Financial Services Licensees, or AFSLs, which are predominantly small businesses, would no longer be required to notify the regulator every time an employee commenced a professional year.
At present, AFSLs were required to notify FASEA, before it was disbanded, within 30 days of taking on or registering the new entrant as well as when a decision was made to ‘fast track’ the completion of Quarter 1 or 2 of the training schedule. The latter requirement will remain after the change, which can be completed via the ASIC Connect platform, but it provides an air of improvement for the beleaguered industry.
In addition, licensees will be required to notify ASIC when a new financial adviser has completed their professional year and been provided with a completion certificate by the licensee. As was the case with existing advisers passing the exam, licensees must do this within 30 days.
Going forward, in order to sit the Financial Adviser exam, new (or foreign) advisers will need apply to ASIC for an assessment to determine their eligibility. If successful, they will receive an exam eligibility number then allowing the registrant to book in. The regulator also notes that they can only accept a certified copy of an academic transcript, which must include or be accompanied by proof of completion of an ethics course.
When applying for an exam eligibility number, please note that ASIC can only accept a certified copy of the final academic transcript of the new financial adviser’s approved degree. If the approved degree does not include a course in ethics, an AFS licensee should also submit a certified copy of the final academic transcript of an approved ethics for professional advisers bridging course.
ASIC has suggested that licensees apply for said eligibility at least 15 days before the last day of the booking period for an exam, which happen to be: 20 June to 12 July and 23 September to 13 October.
Drew is editor of The Inside Network's publications and a principal adviser at Wattle Partners.
