By Ross Kelly
Even though they are yet to become law, the corporate regulator says it will generally accept the Federal Government’s proposed refinements to financial services legislation as allowable practise in its ongoing surveillance campaigns.
The Australian Securities andInvestment Commission (ASIC) said that it will “generally not take action” if a planner breaches current requirements that are the subject of the 25 refinement proposals flagged last month by the Parliamentary Secretary to the Treasurer, Chris Pearce.
But leniency will be conditional that the breach does not materially harm or disadvantage consumers or undermine the “confident and informed participation of consumes in the financial market”.
“In the territory of the proposed refinements, we’re going to bear them in mind for general contraventions. Generally speaking, we won’t be taking action.
“But only in the narrow compass of what is being proposed,” said ASIC director, compliance and financial services regulation Darren Williams.
As part of the 25 proposed changes to FSR, advisers won’t have to provide subsequent Statements of Advice (SOAs) if the original basis of the advice does not change — even if they are switching a client’s super between products.
The proposal paper also recommends that advisers should not be obliged to include information in an SOA on alternative strategies or products that do not form part of their final recommendation.
Other proposed refinements include allowing more tailored Financial Services Guides (FSG) and abolishing the requirement to duplicate information already in FSGs on Product Disclosure Statements.
Industry discussion of the proposed refinements ended last Friday, and they will become law, conditional on their free passage through both houses of Federal Parliament.
