Welcome to the latest issue of the KHQ Super Alert. This week, ASIC released a cybersecurity reminder to AFS licensees and a separate reminder that AFS licensees are no longer required to notify ASIC of professional year arrangements with new financial advisors.
ASIC – Cybersecurity reminder for AFSL holders
On 12 May 2022, ASIC published a media release outlining the implications of a recent Federal Court ruling on cybersecurity measures for AFSL holders (see our Super Alert of 6 May 2022 for a summary). According to ASIC, its minimum expectations are that:
- ‘AFS licensees should be aware of the potential consumer harms that arise from cybersecurity shortcomings’;
- there should be ‘active management of cyber risks and continuous cybersecurity improvement, including assessment of cyber incident preparedness and review of incident response and business continuity plan’;
- ‘AFS licensees [should] act quickly in the event of a cyber incident to minimise the risk of ongoing harm’; and
- AFS licensees are strongly encouraged to report cyber incidents to the Australian Cyber Security Centre.
Click here for details.
ASIC – AFS licensees no longer required to notify ASIC of professional year arrangements with new financial advisors
On 9 May 2022, ASIC published an update to remind AFS licensees that it no longer requires licensees to notify ASIC of the professional year arrangement between themselves and a new financial advisor.
In its update, ASIC explained that licensees ‘were previously required to notify the former Financial Adviser Standards and Ethics Authority of a professional year arrangement between themselves as a licensee, the identified supervisor and the new financial adviser within 30 days of a new financial adviser commencing their professional year’. ASIC further explained that ‘licensees are still required to notify ASIC if they grant a new financial adviser accelerated progression through Quarter 1 and/or Quarter 2, and when they issue a final completion certificate at the completion of the new financial adviser’s professional year’.
ASIC also published ‘updated information on eligibility to sit the exam, clarifying requirements for new financial advisers and foreign advisers’.
Click here for details.
ASIC – Quarterly update released
On 28 April 2022, ASIC released its quarterly update for the October to December 2021 period. It includes a list of actions taken over alleged breaches of the law, which included ‘charging ‘fees for no service’ and providing consumers with misleading information’. The update also highlighted a range of new responsibilities implemented stemming from recent law reform.
Click here for details.
