ASIC issues experienced pathway guidance

ASIC has released new guidance for financial advisers who could potentially qualify as experienced providers and skip further education and training.

The regulator today released Information Sheet 281 FAQS: Relevant providers - Accessing the experienced provider pathway (INFO 281) as a follow up to the government formalising rules that recognise veteran financial advisers and exempts them from undertaking further qualifications.

It serves as an alternative for advisers to satisfy the qualifications and professional year standards.

The new law passed last year states that an experienced provider is a person who was a relevant provider of personal advice for at least 10 years between 1 January 2007 to 31 December 2021, and had a clean disciplinary record as at 31 December 2021.

The adviser should also pass the mandatory exam by 1 January 2022 or 1 October 2022 if they were eligible for the exam extension and if they were authorised to provide personal advice to retail clients on relevant financial products on that date.

INFO 281 also provides guidance to AFS Licensees on their requirements to notify ASIC when they receive a declaration from an experienced provider they authorise.

Licensees were able to make declarations since 21 September 2023, which is the day after Treasury Laws Amendment (2023 Measures No. 3) Act 2023 received Royal Assent.

To access the pathway, advisers must make a written self-declaration to their licensee to confirm they meet the experienced provider criteria.

From 1 July 2024, the licensees must lodge the notice on behalf of the experienced provider via ASIC Connect.

"There is no deadline by which a person must make a declaration to access the experienced provider pathway. However, an existing provider who has passed the financial adviser exam by their exam cut-off day is required to meet the qualifications standard by 1 January 2026 in order to continue to provide personal advice from that date," ASIC's guides states.

An existing provider who intends to continue to provide personal advice from 1 January 2026 and who does not meet the qualifications standard on that date except through the experienced provider pathway will need to make a declaration before 1 January 2026 to continue to be authorised and registered to provide personal advice, ASIC said.