On the first anniversary of FAP licences, The Advisor Platform’s Ryan Edwards reflects on the past 12 months and looks ahead to the first FAP annual returns…
On the 16 March last year, a significant milestone was reached in the industry with transitional licences expiring and the requirement for financial advice providers to have a full licence in place.
At this point, advisers had done the work to get their licence, but now it was time to run a compliant business in line with their declared policies and processes, and have good governance and oversight.
We see the transition to licensing as an invaluable opportunity for advisers to refine their operations and enhance the advice they give to their clients. Advisers who have made the most of the opportunity, put in the work, embraced the change, and capitalised on the services available to them, will succeed.
Good governance is good business. This increases the businesses value, and also means formal regulatory obligations are easily met.
There are, however, still advisers in the industry who haven’t determined how they’ll meet their obligations, particularly in the areas of governance and oversight. Their time is running out with the next milestone for the industry fast approaching.
The end of the first regulatory returns period is on 1 July with the return due by 30 September. For advisers equipped with the right tools and support, navigating the requirements of the first FAP returns should be straightforward.
However, for those who find themselves unprepared, the road ahead will be daunting.
Advisers concerned about the upcoming returns are encouraged not to delay seeking support.
Ryan Edwards, Managing Director at The Adviser Platform. He has been with the firm for more than six years, and has more than 16 years’ experience in the financial services industry in Australia and New Zealand.