Asset consultants are in the clear. So far as the Australian Securities and Investment Commission (ASIC) is concerned they should not be regarded in the same context as financial advisers.
What is more, ASIC says asset consultation is not a legally defined concept in the corporations legislation.
Having been asked a question by NSW Liberal back-bencher, Jason Falinski about Frontier Investment Advisers describing itself as being “Australia’s leading independent asset consultant”, ASIC has suggested that Frontier probably shouldn’t feel as constrained about using the term “independent” as a financial adviser.
Answering Falinski’s question on notice, ASIC said that, generally, the financial services industry uses the term ‘financial advice’ when individuals are given advice on their personal finances.
“The term ‘asset consultation’ is commonly understood in the financial services industry to mean advice given to institutions regarding how assets could be invested on behalf of others to attain an investment objective,” ASIC said.
“A person who provides asset consultation – an asset consultant – would ordinarily be engaged by a wealth manager, such as a superannuation fund trustee,” it said.
“An asset consultant would advise on matters such as the merits of possible investment strategies and asset allocations, and the selection of service providers, such as investment managers.”
