ASIC hits 2 AFSLs over unregistered advice | Australian Markets
The Australian Securities and Investments Commission (ASIC) has hit two financial planning licensees with infringement notices for permitting financial advisers to supply personal advice whereas being unregistered.
The regulator named Sky Money Pty Ltd and Smart Financial Capital Pty as the 2 licensees who’ve been required to pay infringement discover penalties of $31,300 on 1 July and 11 July respectively.
ASIC famous that fee of the infringement discover didn’t characterize an admission of guilt or legal responsibility.
The announcement mentioned ASIC had acted as a result of it had affordable grounds to imagine that the licensees had authorised a financial adviser who gave personal advice to a retail shopper in relation to related financial merchandise whereas the adviser was unregistered.
It mentioned failure to register a financial adviser creates a risk for customers who might obtain personal advice from unregistered advisers. The registration requirement is an important shopper safety mechanism to make sure AFS licensees have thought-about and obtained declarations about whether or not their financial advisers are match and correct and meet the training and coaching requirements.
Each AFS licensee instantly registered their financial adviser and reported the breach to ASIC after turning into conscious of their particular person being unregistered. ASIC had regard to those circumstances in deciding its strategy to taking enforcement motion.
