Who must maintain Financial Adviser registration + standards (s 921B)?

Relevant providers must be on the Financial Advisers Register and meet education + CPD + Code of Ethics.

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).

Applies when the business has an AFSL. Where the business has financial products no afsl, check whether you provide financial services (you then need an AFSL or authorised-representative status).

How the regulator frames it: 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.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Outcome across the 35 industries Rules Mate maps (35 of 35: no).

The answer is the same in every industry: no. Industry does not change who must comply.

Structure does not change the answer across all industries: for every structure the answer is "no".

Size does not change the answer across all industries: at every size band the answer is "no".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an AFSL.

Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:

• The business holds an Australian financial services licence (AFSL): it then applies (AFSL holder).
• The business issues financial products or gives financial product advice: it becomes worth checking, because it applies only if you provide financial services (you then need an AFSL or authorised-representative status).

The engine shows this obligation as "check whether this applies" when a business has financial products no afsl. It then applies only if you provide financial services (you then need an AFSL or authorised-representative status). That fact is not something Rules Mate can infer from industry, structure or size.

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).

Frequency

Annual

Evidence to keep

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.

Status

Current

Priority

Critical

Maximum 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)

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

If this obligation applies to you, so do these 7: the engine uses the same rule for each.

• Comply with AFSL general obligations (s 912A)
• Maintain adequate PI insurance (AFSL holders, RG 126)
• Authorise representatives correctly (Authorised Representative regime)
• Ban on conflicted remuneration (FOFA)
• AFSL representative training (RG 146)
• Provide FSG + Statement of Advice to retail clients
• Best interests duty for financial advisers (s 961B-G)

Rules Mate tracks 1 published obligation tagged "financial advice", 1 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is a annual obligation.

Regulated by Australian Securities and Investments Commission.

ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).

• Australian Securities and Investments Commission

Corporations Act: The foundational federal Act for Australian corporate law.

• Corporations Act 2001

Free tools that help with this obligation:

• Compliance calendar builder