The Australian Securities and Investments Commission (ASIC) has issued infringement notices to two AFS licensees whose financial advisers provided personal advice while unregistered.

Sky Money Pty Ltd and Smart Financial Capital Pty Ltd each paid an infringement notice penalty of $31,300 on 1 July 2025 and 11 July 2025, respectively. Payment of an infringement notice is not an admission of guilt or liability.

ASIC acted because it had reasonable grounds to believe that the AFS licensees had authorised a financial adviser who gave personal advice to a retail client in relation to relevant financial products while the adviser was unregistered.

Failure to register a financial adviser creates a risk for consumers who may receive personal advice from unregistered advisers. The registration requirement is an important consumer protection mechanism to ensure AFS licensees have considered and received declarations about whether their financial advisers are fit and proper and meet the education and training standards.

Each AFS licensee immediately registered their financial adviser and reported the breach to ASIC after becoming aware of their individual being unregistered. ASIC had regard to these circumstances in deciding its approach to taking enforcement action.

ASIC has now issued five infringement notices this year to AFS licensees who breached their obligations requirements.