ASIC releases guidance on the experienced provider pathway for financial advisers

ASIC has released Information Sheet 281 FAQS: Relevant providers – Accessing the experienced provider pathway (INFO 281) to provide guidance to financial advisers and Australian financial services (AFS) licensees about the experienced provider pathway following changes to the law made by the Treasury Laws Amendment (2023 Measures No. 3) Act 2023.

Since 1 January 2019, professional standards have applied to financial advisers. This includes the qualifications standard and the professional year standard.

The experienced provider pathway enables financial advisers to be deemed as having met the qualifications and professional year standards without needing to undertake further education and training if they have:

at least 10 years’ (cumulative) experience as an authorised financial adviser between 1 January 2007 and 31 December 2021
a clean disciplinary record as at 31 December 2021 (i.e. they have not been banned or disqualified under Pt 7.6 of the Corporations Act 2001 or given an undertaking under s93AA or 171E of the ASIC Act 2001).
To be eligible to access the pathway, a financial adviser should also have passed the financial adviser exam by 1 January 2022 (or 1 October 2022 if they were eligible for the exam extension) if they were authorised to provide personal advice to retail clients on relevant financial products (personal advice) on that date.

To access the pathway, financial advisers need to make a written declaration and give a copy to their authorising AFS licensee(s). Existing providers who seek to rely on the pathway need to make a declaration and provide it to their licensee before 1 January 2026 so they can continue to provide personal advice from that date.

Financial advisers who are eligible to access the experienced provider pathway have been able to make a declaration since 21 September 2023. From 1 July 2024, AFS licensees will be required to notify ASIC using ASIC Connect where they have received a declaration from a financial adviser who is eligible to access the experienced provider pathway, including where they received a declaration from a financial adviser before this date.

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