ASIC releases ROA guidance and examples
The Australian Securities and Investments Commission (ASIC) has released an information sheet on records of advice (ROA) and three ROA examples to provide clarity when using ROAs to provide personal advice to retail clients.
INFO 266 FAQs: Records of Advice outlined four scenarios where an ROA should be used instead of a statement of advice. This included ‘COVID-19 advice’, ‘small investment advice’, ‘no buy or sell product advice’ and ‘further advice.
The FAQ also covered how to use, prepare, and keep ROAs for each circumstance, as well as other matters that pertain to it.
This guidance follows ASIC’s release of an example ROA in July.
ASIC consulted the Financial Adviser Standards and Ethics Authority (FASEA) on the ROA examples and “welcomed” FASEA’s confirmation that they were consistent with advisers’ obligations under the FASEA code of ethics.
Danielle Press, ASIC commissioner, said: “This is the first of ASIC’s initiatives developed in response to the financial advice industry’s recent feedback on our consultation to improve consumers’ access to affordable advice.
“We expect this practical guidance and information will provide clarity and certainty to financial advisers about when and how they can use ROAs.”
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