Three financial services licensees have been hit with $31,300 penalties after unregistered staff gave personal advice to retail clients. 

The registration rule has applied since February last year: an adviser must be authorised by their licensee and registered with the Australian Securities and Investments Commission before giving financial advice to retail customers.  

Australian Advice Network, IA Advice and Sherrin Partners Services have paid the penalties. Each immediately registered their advisers and issued a breach report to ASIC after being made aware of the issue.

The regulator says payment of an infringement notice is not an admission of guilt or liability.

Failure to register a financial adviser creates a risk for consumers and may indicate licensees do not have adequate governance arrangements, ASIC says. It has published guidance online and recorded a webinar to assist licensees.