ASIC extends COVID-19 relief for financial advice
The Australian Securities and Investments Commission (ASIC) is extending the temporary relief for financial advice and capital raisings due to the continuing uncertain impacts of COVID-19, including the extension of the financial advice relief related to the COVID-19 early release of superannuation scheme.
ASIC said it would extend the COVID-19 financial advice relief due to the extension of the scheme by the Government.
It would continue to monitor the appropriateness of the relief measures and could then either extend or end it, upon what it deems sufficient notice.
The financial advice relief and the no-action positions for superannuation trustees providing intra-fund advice aimed to assist the industry in providing consumers with affordable and timely advice during the COVID-19 pandemic and were originally announced on 14 April, 2020.
The capital raising relief aimed to assist listed entities affected by the COVID-19 pandemic to raise capital in a quicker and less costly way without undermining investor protection and was originally announced on 31 March, 2020.
To extend relief, ASIC registered the ASIC Corporations (Amendment) Instrument 2020/862, which meant:
- The earlier amendment to the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 would now be repealed on 1 January, 2021 (instead of 2 October, 2020);
- The ASIC Corporations (Trading Suspensions Relief) Instrument 2020/289 would now be repealed on 1 January, 2021 (instead of 2 October, 2020); and
- The ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355 would now be repealed on 15 April, 2021 (instead of 15 October, 2020).
ASIC also amended its no-action position for superannuation trustees to extend it until 31 December, 2020, to align with the extension of the COVID-19 early release of superannuation scheme.
AUTHOR
Chris Dastoor
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