The FPA, SMSF Association, Chartered Accountants Australia and New Zealand, CPA Australia and Institute of Public Accountants released the standardised template on Tuesday, which contains guidance on information advisers must include in their ROA in order to comply with ASIC’s regulatory relief measures.
The relief from providing an SOA was announced by the regulator in April, to allow advisers and accountants to provide low-cost advice to clients who may need early access to their super because of COVID-19 induced financial hardship.
The template contains basic administrative, lifestyle and financial details that advisers can pre fill about the client, as well as options for whether the client’s circumstances – other than those related to COVID-19 – have changed since they last sought advice.
There are also options depending on whether advisers are consulting a single client or couple that have both been affected by the coronavirus crisis.
Following the basic client facts, advisers can then select from options including advising the client to take out $10,000 this financial year, $10,000 next financial year, $10,000 in each financial year or not withdraw any money.
Additionally, the template contains sections outlining the adviser’s fees, potential conflicts of interest, limitations and risks of the advice being provided.
In a Twitter post, SMSF Association policy manager Franco Morelli said the aim behind the template was to expand the accessibility of early super release advice.
“We hope this will allow more individuals to receive advice from their chosen professional, for less than $300, on whether they should seek access to their super,” Mr Morelli said.
[i]”Sorry Mr Adviser but when that Australian came to you for crying for help, you forgot to get our Fact Find Signed. So sorry, but you’re compliance standing is now ZIP and we’re going to audit 4,000 files from 1992.” [/i][i][/i] You might be able to do the job for free/ probono for an existing ongoing advice relationship client, but one hell of a risk for anyone walking off the street. Thank you FPA for helping contribute to over regulation, red tape, compliance and Government intervention. After all it’s not CBA Management that are providing poor advice, it’s those Planners.
Any relief from FASEA requirements. All those Standards of getting a client to an educated and informed position etc. How about relief from the AML, Privacy laws? Not so much avoiding these, but the processes and documentation required to confirm you’ve explained the Privacy Laws to the new client or you’ve assessed their identity for AML. What about relief from the FPA’s requirements to sign a letter of engagement? What about relief from getting Fact Finds, signed plus any other signed document that licensee required, could be FSG signed. What about the relief from Best Interest Duty clause (G) which states you must do “anything else” in order to show best interest advice. Commonly called if it’s complaint just write out a cheque paragraph. How about relief from the 1-3 consent forms to charge $300 to show the client consented. What about relief from having to get consent from the client to have the fee passed on from the dealer to the adviser to show to prove it’s not conflicted remuneration? Are you going to risk those compliance breaches?
“We hope this will allow more individuals to receive advice from their chosen professional, for less than $300.”
I will leave this one to the accountants.
Wonder who came up with the $300 figure – anyone know?
My guess is Tommy The Clown…