SoA COVID-19 relief to cease this month
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.”
AUTHOR
Laura Dew
Recommended for you
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
Despite the perception that short-term market events shouldn’t affect portfolio decisions, Praemium research finds 60 per cent of advisers have made portfolio changes in response to US President Donald Trump’s decisions.
International advice group Findex has appointed a senior individual to spearhead its M&A and growth operations across Australia and New Zealand, seeking to make the brand a household name.
