Temporary measures allowing financial advisers to provide a Record of Advice rather than a Statement of Advice will cease from 15 April, the Australian Securities and Investments Commission (ASIC) has confirmed.
The measure was first introduced in April 2020 as a result of the COVID-19 pandemic and had been extended twice on 15 April 2021 and October 2021.
It allowed the following forms of relief:
- ‘Situations in which Statement of Advice is not required’ relief. This relief allowed financial advisers to provide a record of advice, rather than a statement of advice, to existing clients requiring financial advice due to the impacts of the COVID-19 pandemic.
- ‘Urgent Advice’ relief. This relief allowed financial advisers additional time to give their clients a time-critical statement of advice.
In a statement, the regulator said: “ASIC undertook targeted industry consultation to better understand the effects of our approach.
“Based on feedback, we do not consider that the current status of COVID-19 responses in Australia provides a sufficient basis for a decision by ASIC to further extend the relief provided by the COVID-19 Instrument.”