In a statement released on 1 August, Asic has given more information on its professional stantards reforms for financial advisers.
Existing provider
Of note, the statement clarifies the process for recognising financial advisers as “existing providers”.
“Financial advisers who are listed on the Financial Advisers Register (FAR) between 1 January 2016 and 1 January 2019 will be recognised as an ‘existing provider’ under the new professional standards,” the statement says.
Asic added that it will be a financial adviser’s responsibility to make sure that they are on the FAR.
Exams mandatory
Without recognition as an “existing provider”, an adviser must pass an exam and complete an approved qualification by 1 January 2019 to continue working as a financial adviser.
The reforms will also mean that, if an adviser fails to register, they will have to undertake a year of work and training.
If a person does register as an “existing provider”, they will have until 1 January 2021 to pass the exam, and 1 January 2024 to complete an approved qualification.
In the meantime, they can continue to work as a financial adviser.
Financial advisers can demonstrate that they are an ‘existing provider’ if they are:
- “current” on the register at any time between 1 January 2016 and 1 January 2019; and
- not banned, suspended or disqualified as at 1 January 2019.
