ASIC scrutinising financial calculator relief

The Australian Securities and Investments Commission (ASIC) is monitoring companies that are providing personal advice under a general advice ruling to avoid documentation such as statements of advice, according to Map My Plan.

The firm’s advisory board member, Simon Micallef, said the use of financial calculators was possibly allowing firms to provide personal advice under the guise of general advice.

He said that while financial calculators captured clients’ personal information through retirement income calculators or life insurance calculators, ASIC provided relief for advisers if the information collected was used only for general calculation advice, and they avoided all advertising, promotions, or product advice linked to those calculations. This meant statements of advice (SOAs) did not need to be provided.

Related News:

Micallef had seen firms that had provided personal advice but had taken full relief because of the calculators they were using.

“They’re using calculators for the situation of purely using that for generic calculation information. They go on further to say in their FSGs [financial services guides], their SOAs, anywhere you look, there’s this statement in italics and they make it very clear,” Micallef said.

“They go on to say that our staff, directors, only provide general advice. We consider none of your personal circumstances, and as a result not going to issue an SOA.”

Micallef said ASIC was examining these general advice warnings.




Related Content

ASIC facilitates crowd-sourced funding by public firms

The Australian Securities and Investments Commission (ASIC) has issued new guidance for public companies and crowd-funding platform operators on how t...more

ASIC permanently bans man for spruiking

The Australian Securities and Investments Commission (ASIC) has banned permanently John Dimitropoulos of Seven Hills, New South Wales, from financial ...more

ASIC failed in solving Trio case

The Australian Securities and Investments Commission (ASIC) has been accused of releasing inaccurate and misleading information about the Trio Capital...more

Author

Comments

Add new comment