According to the updated legislation, codified under section 912G of the Corporations Act, this mandate poses a strict obligation on authorised representatives. These representatives are required not only to maintain comprehensive records of personal advice dispensed for a minimum period of seven years but also to allow continued access to these records by the licensee. This rule stands, irrespective of the status of the authorised representative in relation to the licensee at any point in time.
Interestingly, this revision implies that the obligations outlast the tenure of an authorised representative with their licensee. Hence, even if a representation agreement dissolves, the responsibility of maintaining and providing access to these crucial records remains intact.
Undoubtedly, this raises several considerations for licensees and representatives alike in how they execute compliance strategies and document management. Financial advisors are now advised to review their record-keeping processes and data accessibility to comply with the enhanced standards brought forth by ASIC.
This legislative change is set to be repealed at the outset of October 2029, unless an extension or modification is put forth before then. This adds a layer of temporariness, suggesting that individuals in the financial advising realm should keenly observe any developments regarding its potential extensions beyond its stipulated validity.
An interesting facet introduced by these stipulations is its impact on the dynamics of licensing and independence within the financial advisory sector. By enforcing a standardized compliance across different states of representation, it also potentially influences the flexibility and autonomy that authorized representatives typically enjoy when affiliating themselves with various licensees over their career span.
This information was originally reported by David Jacobson from Bright Corporate Law.
