Australia's financial markets regulator has extended by two weeks the registration period for Australian financial services licence holders to provide personal advice to retail clients.。The registration deadline has been postponed several times before, with the new deadline set for February 16, 2024.。

Australian Financial Advisors Must Register

Australian Securities and Investments Commission (ASIC) records show that 4,036 (26%) of financial advisors in Australia advising retail customers on relevant products have not registered after 18 January 2024.。

The regulator stressed that the extension was granted because the deadline "coincided with the summer holidays."。However, the agency is reluctant to provide further extensions.。

Based on the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry, ASIC has proposed a mandatory registration process for financial advisers.。

According to the regulator, all relevant providers in Australia, including timeshare consultants, must register after the deadline.。This does not include temporary related providers.。

Illegal enforcement actions

ASIC stressed that any relevant provider providing personal advice without being registered would result in a violation of the restrictive civil penalty provisions.。In addition, any violation will have serious consequences for unregistered financial advisers.。

ASIC Commissioner Alan Kirkland said: "The provision of personal advice by unregistered consultants is prohibited and will be subject to severe penalties.。Considering that the initial registration period coincided with the summer holidays, ASIC offered a short extension。"

"After the revised deadline has passed, ASIC will commence a programme to check compliance with this requirement and will take enforcement action if we find consultants giving advice without being registered."。"

Although not specifically stated, mandatory registration requirements may weaken the capabilities of financial influencers (also known as financial influencers) because most of them are not registered。Earlier, ASIC had already taken action against such a well-known financial influencer, banning him from giving financial advice.。