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ASIC releases guidance on limited advice

The corporate regulator has released an information sheet and an example statement of advice (SOA) to assist advisers and licensees to comply with their obligations.

ASIC commissioner Danielle Press said it is releasing the guidance because many consumers prefer limited and specific advice over comprehensive advice.

“We also understand that industry faces some barriers to providing limited advice, including a lack of clarity about the regulatory requirements,” Ms Press said.

“We expect this guidance will provide regulatory certainty to industry and help reduce compliance costs. It will assist financial advisers in their efforts to make these forms of advice more available to consumers and assist them in delivering quality advice in a timely, affordable, and compliant manner.”

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In developing the example SOA, ASIC consulted with key industry stakeholders and FASEA.

The new guidance follows feedback from the industry regarding how best to promote access to quality advice in July.

The corporate regulator began the consultation in November last year and received 466 submissions with an aim to understand the issues impacting the supply of “good quality affordable advice” and to implement steps ASIC and the sector can take to improve consumer access.

During a parliamentary joint committee on Friday (26 November), Ms Press said ASIC is gearing up for its new responsibilities in support of the recently passed Better Advice Bill.

With the legislation set to commence from 1 January 2022, Ms Press said clarity around how panels will be convened and how matters will be dealt with by the single disciplinary body will be shared with industry “very early next year”.

ASIC releases guidance on limited advice
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Neil Griffiths

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.

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