ASIC calls out sloppy adviser data

ASIC is reprimanding AFS licensees (AFSL) for submitting inaccurate information about their financial advisers and will ramp up its enforcement from August.

AFSLs are making numerous errors when it comes to providing data on the Financial Advisers Register (FAR).

This includes AFSLs confusing some advisers' qualifications as "approved" when they meant they were "approved" for professional designations such as the Certified Financial Planner (CFP).

Some AFSLs said that their advisers had "approved" qualifications when referring to a bridging course.

"These may be listed in the determination [Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021] but are required to be coupled with another qualification to meet the requirements of the professional standard," ASIC said.

Yet some qualifications marked as "approved" were not approved qualifications under the determination of the Financial Adviser Exam, Australian Qualifications Framework 1-5 qualifications, and Regulatory Guide 146 training/qualifications.

ASIC is also aware of instances where AFSLs are not ensuring the contact details of their financial advisers are up to date.

From August 1, ASIC said it will launch a compliance program to ensure that the information recorded on the FAR about approved qualifications is correct and will consider enforcement action where necessary.

This will be a key focus for ASIC in the lead up to 1 January 2026, when all advisers must comply with the qualification standard, either by completing an approved qualification; qualifications the Minister has determined to be equivalent to an approved qualification for existing advisers; or by accessing the experienced provider pathway.

"AFS licensees are urged to immediately check all the information recorded about their financial advisers on the Financial Advisers Register, with a particular focus on the adviser's approved qualification(s), ability to provide tax (financial) advice services, business address and telephone number," ASIC said.

AFSLs can rectify incorrect information by lodging a "maintain transaction" via ASIC Connect that comes with a fee.

"It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure that the information provided to ASIC is true and correct. It is also an offence to fail to update the Financial Advisers Register within 30 business days of a financial adviser's details changing," ASIC warned.

Today, ASIC introduced an update to its register.

It will no longer display whether a financial adviser's education and training meets the requirements of an "approved" qualification, rather continue to display information provided by AFSLs about an adviser's relevant qualifications and training (without the approved qualification marking).

"Removing this information from the public-facing register aims to reduce confusion and minimise risks to consumers. The update also recognises the introduction of the experienced provider pathway, which provides an alternative to the completion of an approved qualification," ASIC said.

"To assist licensees to identify qualifications currently marked as 'approved' on the Financial Advisers Register, ASIC has made a one-off point-in-time dataset available on the ASIC website. This dataset can be used in addition to checking an adviser's details on an individual basis in ASIC Connect and will be available until 31 July 2024."