Maintain Financial Adviser registration + standards (s 921B)
Relevant providers must be on the Financial Advisers Register and meet education + CPD + Code of Ethics.
Who must comply
Individuals who provide personal advice to retail clients on relevant financial products, whether as an AFS licensee, an authorised representative, or an employee or director of a licensee or related body corporate; and the AFS licensees that authorise them. Advisers whose only relevant product is a time-sharing scheme are exempt.
What triggers it
Authorising, or acting as, an individual who gives personal advice to retail clients on relevant financial products; a person becoming a relevant provider, a change in their details, or failing to meet CPD in a CPD year.
When due
Before advice is given (education, exam and registration); CPD in every licensee CPD year. Notices to ASIC (a person becoming a relevant provider under s 922D, changes under s 922H, CPD non-compliance under s 922HB) must be lodged within 30 business days of the relevant day (s 922L).
Evidence required
Evidence of the approved qualification and exam pass; supervision and work-and-training records for provisional relevant providers; CPD records for each CPD year; Code of Ethics compliance records; authorisation notices; Register of Relevant Providers entries and the s 922D notices showing qualifications and 5-year advising history.
Max penalty
Breaching the education and training standards (s 921BA(5)) or the Code of Ethics (s 921E(3)) contravenes a restricted civil penalty provision; a Financial Services and Credit Panel may issue an infringement notice of 12 penalty units ($4,368) per contravention, and ASIC or the Panel can take other action including registration prohibition and banning orders. Failing to lodge a required notice with ASIC is a separate contravention (s 922M)
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Division 8A of the financial services provisions of the Corporations Act 2001 sets professional standards for 'relevant providers', the individuals who give personal advice to retail clients on relevant financial products. Section 921B sets four education and training standards: a bachelor or higher degree or equivalent qualification approved by the Minister; passing the exam administered by ASIC; at least 1 year of work and training as a provisional relevant provider; and continuing professional development (CPD) set by the Minister, completed in each licensee's CPD year. Every relevant provider must meet these standards (s 921BA) and comply with the Code of Ethics made by the Minister (s 921E). A licensee must not authorise an adviser who has not met the degree and exam standards or is not completing the work and training year (s 921C). A relevant provider must not give personal advice unless registered on ASIC's Register of Relevant Providers (s 921Y), and ASIC must refuse registration while a banning, disqualification or registration prohibition order is in force (s 921ZC).
Enforced by
Source legislation
Topics
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Reading
Frequently asked questions
- Who must comply with Financial Adviser registration + standards (s 921B)?
- Individuals who provide personal advice to retail clients on relevant financial products, whether as an AFS licensee, an authorised representative, or an employee or director of a licensee or related body corporate; and the AFS licensees that authorise them. Advisers whose only relevant product is a time-sharing scheme are exempt.
- What triggers Financial Adviser registration + standards (s 921B)?
- Authorising, or acting as, an individual who gives personal advice to retail clients on relevant financial products; a person becoming a relevant provider, a change in their details, or failing to meet CPD in a CPD year.
- When is Financial Adviser registration + standards (s 921B) due?
- Before advice is given (education, exam and registration); CPD in every licensee CPD year. Notices to ASIC (a person becoming a relevant provider under s 922D, changes under s 922H, CPD non-compliance under s 922HB) must be lodged within 30 business days of the relevant day (s 922L).
- What is the maximum penalty for Financial Adviser registration + standards (s 921B)?
- Breaching the education and training standards (s 921BA(5)) or the Code of Ethics (s 921E(3)) contravenes a restricted civil penalty provision; a Financial Services and Credit Panel may issue an infringement notice of 12 penalty units ($4,368) per contravention, and ASIC or the Panel can take other action including registration prohibition and banning orders. Failing to lodge a required notice with ASIC is a separate contravention (s 922M)
- What evidence is required for Financial Adviser registration + standards (s 921B)?
- Evidence of the approved qualification and exam pass; supervision and work-and-training records for provisional relevant providers; CPD records for each CPD year; Code of Ethics compliance records; authorisation notices; Register of Relevant Providers entries and the s 922D notices showing qualifications and 5-year advising history.
Source: https://www.legislation.gov.au/C2004A00818/latest/text. Rules Mate is not a law firm. Always verify against the live regulator source before acting.