Product issuers no longer have to include general advice warnings in advertisements that provide generic financial advice, and planners may soon be relieved from having to repeat the warning to retail clients who have heard it before.
Australian Securities and Investments Commission (ASIC) assistant director of regulatory policy Joanna Bird said the relief applied to advertisements in the media, billboards or posters, and aimed to address inconsistencies in the rules applying to licensed and unlicensed product issuers.
“Our relief is intended to ensure consumers receive important information in a simpler and consistent manner,” she said.
Product issuers now only need to comply with disclosure requirements in the Corporations Act 2001, and state that a person should consider whether the financial product is suitable for them.
ASIC is also proposing to relax the rules on repeating warnings to clients who have heard them before.
Currently, a warning must be given each time general advice is provided to a retail client, but the regulator has released a consultation paper suggesting planners should only have to give retail clients a short reminder if the client had heard the full warning before.
Bird said the relief proposal aimed to reduce repetition, while minimising consumer confusion about the kind of advice they were getting.
She said ASIC was “open to alternative proposals”, and was seeking comment before September 26, 2005.
Adviser training is also under review, with the regulator releasing an update to Policy Statement 146 (PS 146), removing the need for training of advisers on basic deposit products and related non-cash payment products.
Training in these areas now only needs to cover specialist knowledge and skills that are relevant to the adviser’s activities.
Licensees also no longer need to provide continuing training in some cases, for example, if the product has not changed.
Bird said the updated policy would give licensees greater flexibility in tailoring training to suit their advisory activities, without the cost of unnecessary mandatory generic knowledge training.
If advisers provide financial product advice on other products, in addition to basic deposit products, they will still have to comply fully with the PS 146 requirements for those other products.
