ASIC relief changes ‘more important than ever’: Hume

15 April 2020

Senator Jane Hume has said the changes by the Australian Securities and Investments Commission (ASIC) to assist consumers impacted by COVID-19 to receive financial advice are ‘more important than ever’.

On Tuesday, ASIC announced it would allow consumers:

  • To access immediate, low-cost advice about whether to take advantage of early access to superannuation;
  • To receive advice more quickly, through a shorter-form record of advice, where they have been impacted by the COVID-19 pandemic; and
  • To increase the availability of time-critical advice – by extending the timeframe for providing a long-form statement of advice from five to 30 days after advice is provided.

Senator Hume said the changes were ‘more important than ever’ as Australian consumers and investors dealt with turbulent markets.

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“It is more important than ever for Australian consumers to get sound advice on how to manage their financial affairs,” she said.

“These measures will help ensure all Australians impacted by the COVID-19 pandemic can quickly access the financial advice they need.”

The temporary measures would be accompanied by additional surveillance activity by ASIC to ensure advisers, registered tax agents and superannuation trustees were acting in the best interest of clients and members.

 




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I'm sorry but ASIC announcements mean no change to the way our practice operates. If ASIC thinks we can provide advice under their guidelines, even cut down for ROA rules, for $300 then we have no hope for the future. If ASIC cared about setting rules that allowed clients to receive advice efficiently and effectively then they need to come and spend time in a practice and see first hand the frustration both advisers and clients feel having to work with ASIC current unworkable rules.

they haven't ever visited a financial planning practice, they have never personally met a financial planner. they have never asked for feedback from a financial planner or when provided listened to any of it. of course, they have a theoretical working knowledge of how it should be run and they are good at telling us how to do it.

i guarantee you not a single person would be able to run, ANY business successfully for more than one week. not a single, if anyone at ASIC ever attempted, they would be at martin place within a year with a begging bowl after declaring bankruptcy.

These changes are a complete joke. Does ASIC have no shame? It's just a free pass for industry funds to coerce members into dropping their early withdrawal request under the disguise of financial advice. It is outrageous and an insult to the hard working men and women who are working long hours, delivering real financial advice, under the heavy weight of an ASIC-induced compliance nightmare.

It seems Hume has no shame either. She has had ample time to fix some of the chronic regulatory problems that are impacting on financial advice. But all she has delivered is conference speeches full of meaningless platitudes.

Now she is trying to associate herself with a two bit ASIC initiative that is a tiny drop in the ocean compared to what is needed. Sadly it seems that Hume's role in the government is primarily to make Frydenberg cups of tea.

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