Is Your FX/CFD Brokerage ASIC-Approved? Regulator Demands Record Clean-Up
Australian
Securities and Investments Commission (ASIC) has urged Australian Financial
Services (AFS) licensees to review and correct information about their
financial advisers on the Financial Advisers Register following a spot check
that revealed errors and inconsistencies in the recorded data.
This move also has significant implications for FX/CFD brokers, as ASIC’s spot checks
have revealed widespread inaccuracies.
The
regulator identified several issues, particularly concerning qualifications and
training courses incorrectly marked as “approved” on the register. Common
errors included mismatched qualification wording, listing professional
designations as approved qualifications, and marking bridging courses or
non-approved qualifications as approved.
ASIC
emphasized the importance of accurate record-keeping, stating, “It is a
serious offense to knowingly provide false or misleading information to ASIC or
to fail to take reasonable steps to ensure that the information provided to
ASIC is true and correct.”
The
regulator has called on AFS licensees, including FX/CFD brokers, to immediately
verify all information about their financial advisers on the register, with a
focus on approved qualifications, tax advice service capabilities, and contact
details. Licensees are required to rectify any inaccuracies by lodging a “maintain”
transaction via ASIC Connect.
In response
to these issues, ASIC has announced changes to the public-facing Financial
Advisers Register. From July 1, 2024, the register will no longer display
whether a financial adviser’s education and training meet the requirements of
an “approved’” qualification. This change aims to reduce confusion and minimize
risks to consumers.
Moreover, AFS licensees must now inform ASIC upon receiving a written declaration from a financial adviser who qualifies for the experienced provider pathway. This pathway permits seasoned advisers to comply with qualification standards without further education.
New Initiatives
ASIC plans
to launch a compliance program on August 1, 2024, to ensure the accuracy of
approved qualification information on the register. The regulator warned it
will consider enforcement action where necessary, particularly in the lead-up
to January 1, 2026, when all financial advisers must comply with the
qualification standard.
Additionally, ASIC urged market intermediaries to enhance
their oversight of business communications. In response to concerns over the
use of unmonitored and encrypted communication channels in business
transactions, the regulator published a new information sheet.
Australian
Securities and Investments Commission (ASIC) has urged Australian Financial
Services (AFS) licensees to review and correct information about their
financial advisers on the Financial Advisers Register following a spot check
that revealed errors and inconsistencies in the recorded data.
This move also has significant implications for FX/CFD brokers, as ASIC’s spot checks
have revealed widespread inaccuracies.
The
regulator identified several issues, particularly concerning qualifications and
training courses incorrectly marked as “approved” on the register. Common
errors included mismatched qualification wording, listing professional
designations as approved qualifications, and marking bridging courses or
non-approved qualifications as approved.
ASIC
emphasized the importance of accurate record-keeping, stating, “It is a
serious offense to knowingly provide false or misleading information to ASIC or
to fail to take reasonable steps to ensure that the information provided to
ASIC is true and correct.”
The
regulator has called on AFS licensees, including FX/CFD brokers, to immediately
verify all information about their financial advisers on the register, with a
focus on approved qualifications, tax advice service capabilities, and contact
details. Licensees are required to rectify any inaccuracies by lodging a “maintain”
transaction via ASIC Connect.
In response
to these issues, ASIC has announced changes to the public-facing Financial
Advisers Register. From July 1, 2024, the register will no longer display
whether a financial adviser’s education and training meet the requirements of
an “approved’” qualification. This change aims to reduce confusion and minimize
risks to consumers.
Moreover, AFS licensees must now inform ASIC upon receiving a written declaration from a financial adviser who qualifies for the experienced provider pathway. This pathway permits seasoned advisers to comply with qualification standards without further education.
New Initiatives
ASIC plans
to launch a compliance program on August 1, 2024, to ensure the accuracy of
approved qualification information on the register. The regulator warned it
will consider enforcement action where necessary, particularly in the lead-up
to January 1, 2026, when all financial advisers must comply with the
qualification standard.
Additionally, ASIC urged market intermediaries to enhance
their oversight of business communications. In response to concerns over the
use of unmonitored and encrypted communication channels in business
transactions, the regulator published a new information sheet.
