ASIC issued consultation entitled Promoting access to affordable advice for consumers.
Follows AST ASIC Aug. 2019 report on giving good value financial advice, see #64255.
Consultation Scope
Seeks input on issues and impediments to supply of quality affordable personal advice, provided from financial advice industry or other stakeholders, and how to improve this.
Review is part of broader ASIC work on improving consumer access to personal advice.
Focus is on access to limited advice, which does not cover all areas relevant to a client.
Information on providing limited, digital and strategic advice is of particular interest.
Also sought input on how to make example statements of advice (SOAs) more helpful.
Cited regulatory guide RG 244Giving information, general advice and scaled advice.
Regulatory guide RG 90Example Statement of Advice: Scaled advice for a new client.
Consultation End
Comments to be received by Jan. 18, 2021, to hold roundtables in Q1 2021 to discuss.
The response to CP 332 was unprecedented, with ASIC receiving 466 submissions from financial advisers, licensees, industry associations and relevant stakeholders.
The infographic sets out the key issues raised by respondents in their submissions.
Key feedback areas included majority of respondents preferred term limited advice.
And a majority of respondents felt strategic advice could benefit consumers.
Key issues in providing strategic advice included uncertainty about legal requirements, concern about providing compliant strategic advice, more ASIC guidance is needed.
And issues of licensees limiting adviser ability to provide strategic advice.
Dec. 2021 Information Sheet
On Dec. 1, 2021, AST ASIC released an information sheet on limited advice and an example statement of advice (SOA) to assist financial advisers and advice licensees.
To comply with obligations when providing limited personal advice to retail clients.
INFO 267: Tips for giving limited advice provides tips and summarizes the relevant guidance from regulatory guide 175 licensing: financial product advisers-conduct and disclosure and regulatory guide 244: giving information, general advice, scaled advice.
INFO 267 includes information on what advice providers can do to meet their obligations under the law, including the best interests duty and related obligations.
As well as the Financial Adviser Standards and Ethics Authority (FASEA) financial planners and advisers code of ethics (code of ethics) when giving limited advice.
Aims to provide regulatory certainty to industry and help reduce compliance costs.
The SOA is annotated to help advisers understand the relevant requirements under the corporations act 2001, follows ASIC’s guidance and example records, see #120643.
Dec. 7, 2021 Advice Licensee/Advisor Hub
On Dec. 7, 2021, AST ASIC launched advice licensee/advisor financial advice hub, in response to CP 332 consultation feedback that AST ASIC guidance was hard to find.
