Three AFS licensees have paid penalties after their authorised representatives provided financial advice to retail clients while not properly registered, according to a recent enforcement update from the Australian Securities and Investments Commission (ASIC).
Australian Advice Network Pty Ltd, IA Advice Pty Ltd, and Sherrin Partners Services Pty Ltd were issued infringement notices by ASIC and subsequently paid $31,300 each on March 5, 21, and 24, respectively.
These penalties relate to instances where financial advisers under their authorisation delivered personal advice without being listed as registered advisers. ASIC confirmed that paying a penalty notice does not amount to an admission of guilt or liability.
ASIC said it had grounds to believe each licensee had authorised at least one adviser to provide personal advice involving financial products without that individual being properly registered on the Financial Advisers Register.
The failure to register advisers as “relevant providers” creates risks for consumers and can signal deficiencies in compliance oversight and governance among licensees.
Under reforms stemming from the Hayne Royal Commission, financial advisers must be registered in addition to being authorised by a licensee. The registration requirement, introduced via the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021, took effect from Feb. 16, 2024.
ASIC said registration is a key mechanism for confirming that advisers meet education, training, and fit and proper standards.
Upon identifying that the individuals were unregistered, all three licensees acted to complete registration and submitted breach notifications to ASIC. The regulator said these remedial steps were considered in determining its regulatory response.
ASIC Commissioner Alan Kirkland has reiterated the regulator’s position on the seriousness of non-compliance with adviser registration.
“The provision of personal advice by unregistered advisers is prohibited and carries significant penalties,” he said.
ASIC has urged licensees to verify adviser registration status on the Financial Advisers Register before permitting any personal advice to be provided to retail clients. The regulator also reminded the industry that a change in licensee requires the new authorising entity to register the adviser again before they can resume offering personal advice.
The Corporations Act outlines that an adviser who provides advice without being registered may breach section 921Y, while the licensee that authorises them may be in breach of section 921Z. In such cases, ASIC may either initiate its own enforcement proceedings or refer the matter to the Financial Services and Credit Panel.
In addition to issuing guidance, ASIC has also been increasing its oversight of financial services firms in relation to registration compliance.
This enforcement action follows ASIC’s recent ban of Queensland adviser Grant Richard Thomson, who was prohibited from working in the sector for five years after being found to have provided inappropriate insurance and financial advice.
Consumer protection remains central to ASIC’s supervisory agenda for 2025. The regulator has identified adviser registration, along with broader compliance and governance issues, as key areas of focus as it continues its surveillance of financial markets and service providers.
