ASIC dishes out $100k in fines for unregistered advisers
The financial services watchdog has issued nearly $100,000 in fines to three Australian advice firms for providing personal advice through unregistered advisers.
The two Queensland-based advisory firms, Australian Advice Network and Sherrin Partners Services, and one NSW-based firm, IA Advice, last month paid out $31,300 in fines that were issued by the Australian Securities and Investment Commission (ASIC).
Whilst acknowledging that payment of an infringement notice “is not an admission of guilt or liability”, ASIC said that its infringement action was based on reasonable grounds that these firms had authorised an unregistered adviser to provide personal advice on financial products to retail clients.
The regulator confirmed that each of the three penalised firms immediately registered their financial adviser and reported their breach after becoming aware of their adviser being unregistered.
The three penalised firms are now listed on ASIC’s infringement notices register.
ASIC introduced the registration requirement for advisers in February 2024 as part of the Better Advice Act, with the giving of financial advice while unregistered a breach of s921 of the Corporations Act.
The law requires that if a financial adviser breaches the law by giving financial advice while unregistered, ASIC must either refer the financial adviser to the Financial Services and Credit Panel or take its own regulatory action.
“Failure to register a financial adviser creates a risk for consumers who may receive personal advice from unregistered advisers,” ASIC wrote in response to its penalty notices.
“The registration requirement is an important consumer protection mechanism to ensure AFS licensees have considered and received declarations about whether their financial advisers are fit and proper and meet the education and training standards.
ASIC added that a failure by firms to register financial advisers may also indicate a lack of adequate governance arrangements to comply with legal requirements.
The regulator urged AFS licensees and relevant providers to be aware of their ongoing registration obligations.
Financial advisers and their AFS licensees can confirm their advisers’ registration status via the Financial advisers register.
Please clarify if the 3 Advisers were already registered on the ASIC Financial Adviser Registration ?
This re-registration / 2nd Adviser registration in 2024 was pure moronic ASIC Govt USELESS RED TAPE BUREAUCRATIC CRAP.
Whilst ASIC / Govt waste time Re-registering every Adviser that was already registered, they can’t actually catch any MIS total failures like Dixon’s.
This ain’t someone doing something wrong, it’s a good example of Government red tape that has priced out Australians from affordable advice, and forced many Australians into the hands of scammers.
If you’ve got to be “licensed” and “registered” and “authorized” and spend a whole day on different ASIC websites paying multiple levies on multiple government websites, it is quite understandable, that at least something is missed. Not to mention a Call centre with a wait time of over 2 hours.
If you don’t know what I’m talking about then let me just say the online forms are like a FASEA exam question and ASIC is like Centrelink on a bad day.
let’s keep in mind that there are same number of ASIC staff policing Advisers as there are regulating Super funds.
ASIC need a complete over haul. Corrupt, Incompetent.