The Australian Securities and Investments Commission (ASIC) has extended the deadline for the registration of financial advisors who provide services to retail clients on relevant financial products to 1 October 2023.

“The registration requirement is new,” the Australian financial market watchdog stated. “It is separate, and in addition to, the pre-existing requirements for an AFS licensee to appoint a relevant provider to the Financial Advisers Register after they have been authorized. Provisional Relevant Providers cannot be registered.”

A Strategic Delay of Deadline

The delay in registration would allow the Australian Parliament to consider improvements proposed by the Treasury Laws Amendment Bill 2023.

Further, ASIC will help the financial advice industry to understand and comply with the registration requirement by issuing regulatory guidance and conducting webinars. The extension will also provide time for the Australian financial service (AFS) licensees to understand the registration requirements.

The misconduct in the Australian financial services industry forced the Aussie authorities to mandate the registration of financial advisers through legislation passed in 2021. The registration deadline was already moved to 1 July 2023 earlier to allow specific improvements in the requirements.

ASIC’s Actions

ASIC, which is Australia’s corporate, markets, and financial services regulator, handles the registrations of financial services providers and also advisors. The regulator also warned against the financial influencers who are providing financial services without holding any authorization.

In a major crackdown, the ASIC hit social media finfluencer Tyson Robert Scholz, popularly known as ASX Wolf, prohibiting him from carrying out any financial services business in the country. Scholz, who had no license, provided trading courses and seminars on ASX-listed equities and offered share purchase recommendations on private online forums and Instagram, where he had more than 20,000 followers. He lured investors by showcasing a luxurious lifestyle on social media.

The regulator also took action against several other financial advisors, whom it found non-competent.