Regulator reminds financial services advisers of duty to maintain up-to-date knowledge
The Australian Securities and Investments Commission (ASIC) has issued formal reprimands to four financial advisers who failed to comply with continuing professional development (CPD) requirements, following recent reviews by the Financial Services and Credit Panel (FSCP).
The action highlights the regulator’s ongoing scrutiny of advisers’ professional standards, with one additional adviser reviewed but not subject to further measures.
“ASIC reminds financial advisers that continuing professional development is not merely a compliance obligation to tick off, it is important to maintain competency and improve knowledge and skills,” the regulator stated. “ASIC will continue to act where financial advisers fail to comply with, or disregard their CPD requirements, including issuing a warning or reprimand or referring financial advisers to the FSCP.”
Financial advisers are reminded to be aware of their CPD obligations, including mandatory categories and minimum hours, and to maintain accurate records.
“Completion of CPD requirements should not be left to the last minute and should be spread throughout the CPD year, as good practice,” ASIC advised.
The regulator added that Australian financial services licensees must ensure their advisers meet training standards, including CPD compliance, and are required to notify ASIC if advisers do not fulfil these obligations during the CPD year.
Under the CPD Determination law, most advisers must complete at least 40 hours of CPD annually, covering technical competence, client care and practice, regulatory compliance and consumer protection, professionalism and ethics, and, where relevant, tax (financial) advice.
The FSCP, which includes ASIC staff and industry members, considers matters referred by ASIC relating to adviser conduct and has a range of powers to address misconduct.
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