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.”
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”.
Having read ASIC guidance seems an awful lot of work for “limited advice”. Also recommending New IP cover in super benefit payable to Age 65 – who offers these policies now. Doesn’t address either cumulative costs of insurance over 10 years, or impacts on retirement benefits. Commissions shown also could be reflected better and show actual commission percentage rates. Can’t see a massive uptake of these processes unless you are a lifey only. Also who are these key industry stakeholders?
Yep, I was surprised it didn’t show the basis of commission calculation, ie % rate.
So one of the key groups ASIC goes to get input is FASEA? The same body being wound up because it added no value, in fact made things much worse, for clients. What’s the bet ASIC didn’t speak to one single adviser or client to get their input. It’s also great to see ASIC releasing information about the single disciplinary body early next year when the regulations commence on 1st January. ASIC really sets the gold standard for incompetent regulators.
like asking everyone to complete a qualifying exam before any study uplift? you are correct. they have set the benchmark high for truly useless and backward thinking burearocracy