ASIC warns advisers after CPD crackdown and FSCP action

The Australian Securities and Investments Commission (ASIC) has taken action against five financial advisers for failing to meet their continuing professional development (CPD) obligations — a key component of maintaining professional standards in the financial advice sector.

Between March and May, ASIC convened multiple Financial Services and Credit Panel (FSCP) sittings, which resulted in four advisers receiving official reprimands, while no action was taken against one.

A summary of each decision has been published on the FSCP Outcomes Register.

ASIC said the outcome serves as a reminder that “continuing professional development is not merely a compliance obligation to tick off, it is important to maintain competency and improve knowledge and skills.”

ASIC warns: compliance cannot be ignored

The corporate regulator reiterated that it would continue to act where advisers “fail to comply with, or disregard their CPD requirements”, which may include issuing warnings, reprimands, or referrals to the FSCP.

ASIC also released several key reminders for advisers and licensees:

• Financial advisers must know their CPD requirements — including mandatory categories and hours — and maintain accurate completion records.
• CPD activities should be completed progressively through the year, not left to the final weeks.
• Australian Financial Services (AFS) licensees must ensure advisers under their supervision are adequately trainedand compliant with CPD obligations.
• AFS licensees must notify ASIC at the end of each CPD year if any advisers have failed to meet the required standards.

Minimum 40 hours of CPD annually

Under the Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018, all licensed financial advisers — except provisional relevant providers — must complete at least 40 hours of CPD each year.

These hours must include minimum training across five mandatory categories:

• Technical competence: five hours
• Client care and practice: five hours
• Regulatory compliance and consumer protection: five hours
• Professionalism and ethics: nine hours
• Tax (financial) advice: five hours (if authorised to provide tax financial advice)

In a media release, ASIC said financial advisers are expected to “maintain and extend their professional capabilities, knowledge and skills, including keeping up to date with all regulatory, technical and other developments relevant to the provision of financial advice.”

Why it matters for brokers and advisers

While the ruling specifically targets licensed financial advisers, the message applies across the broader advice and mortgage sectors.

For mortgage brokers who also hold financial advice authorisations, ASIC’s warning highlights the importance of maintaining up-to-date technical and regulatory expertise — especially as compliance expectations continue to rise.

ASIC has urged all AFS licensees to review their CPD monitoring systems to ensure they can verify completion, record-keeping, and reporting obligations before the end of the current CPD year.

For more information, visit ASIC’s page on Continuing professional development (CPD).

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