ASIC grants super advice relief

ASIC/compliance/financial-planning/corporations-act/superannuation-fund/australian-securities-and-investments-commission/australian-financial-services/trustee/

27 May 2014
| By Staff |
image
image image
expand image

The Australian Securities and Investments Commission (ASIC) granted relief to a superannuation fund which holds an Australian Financial Services License to allow its salaried staff to provide advice without being authorized representatives.

The regulator revealed its relief decision in a report providing an overview of relief applications, and said that relief had been granted to two AFS licensees – a company operating a financial advice business and a superannuation trustee that held all of its shares – Health Super Financial Services.

ASIC said the relief had been sought "to avoid the employed representatives having to be authorized representatives because section911B(1)(a) of the Corporations Act imposed particular responsibilities on authorized representatives if they were acting on behalf of two AFS licensees which were not related bodies corporate.

"The relief was granted because we considered there would be an unreasonable burden placed on the individual employee advisers if they were subject to personal liability under Chapter 7 of the Corporations Act as an authorized representative," the ASIC explanation said.

"We granted the relief by way of a declaration that section48 (of the Corporations Act) be disregarded for the purposes of determining whether the entities are related bodies corporate, when determining whether an employee representative could act on behalf of a licensee," it said.

It said that when giving financial product advice to retail clients, the modified provisions required the advisers to provide a written statement disclosing the licensee responsible for the advice.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 5 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 1 day ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5