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.”
Comments
Does anyone seriously believe , "ASIC undertook targeted industry consultation to better understand the effects of our approach"
ASIC are the enemy; they serve no purpose but cost money.
I used this relief.......never ... Is that fee for no service ASIC? I paid your levy and got no relief.... How much of Tax Payers money was used.
More proof this Liberal Govt is not serious about reducing red tape for advisers & their clients.
The regulation and legislation regarding the provision of financial advice is an absolute fiasco and a disaster.
It is so complicated, so convoluted, so weighed down with over regulated requirements and duplication driven by bureaucrats it is achieving nothing for the consumer and nothing for the financial advice sector.
This has been an exercise in how NOT to do something.
There are too many cooks in the kitchen,snouts in the trough and academics who genuinely believe their own condescending righteous opinion but who have never been involved in the provision of financial advice, been self employed and managed a business, worked with clients themselves.
Many have hidden inside academia and institutions their entire lives because they are either too scared to step outside
or they feel powerful by telling other people how their business and livelihood should operating.
The Liberal Govt have dismally failed financial services and advisers and they will pay a very heavy price indeed.
Its too late Jane Hume and Josh Frydenberg.
You can only keep abusing for so long until the battered and broken party decides that enough is enough and its time to leave.
Good luck in opposition.
Maybe Scott Morrison should turn to his old mate Brian Houston for financial advice?
He seems to have it all worked out!!
Well said.
In addition, the entire fiasco around "ASIC Levies" [just like TPB Registration, undoubtedly the CSLR, and other attempts at "User Pays"], is, in reality, just another sly, overclever attempt at "Taxation By Stealth", and to shift what should be legitimate Government expenditure on market and economic regulation in the interests of ALL Australians "Off book" and off Budget.
It also shifted budgetary and policy decisions into the hands of hidden, non transparent, and unaccountable bureaucrats.
Detaching ASIC from the alleged "Public Service" turned them into an "Independent Law Firm" [with revenue targets...], and immediately resulted in structural corruption at the very top - who would have thought?!?
Apparently, like free speech, religious freedom, and a myriad of other political abuses we have experienced over the last few years, the current "Government" does NOT understand the function and place of Government - only the retention of power, pandering to bureaucrats, and abusing whomever they can.
'targeted industry consultation'. Translation:'we did not speak to any financial planners nor survey them. But we did speak to a couple of academics and licensee compliance nuffies who told us what we wanted to hear'
The only time ASIC speaks to a financial adviser is when they are telling them they are cancelling their licence because the made a typo on their FSCG. ASIC does not care about advisers or clients, they are only interested in pushing their agenda fueled by their hatred of advisers.
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