After announcing its intention to remake three financial advice-related legislative instruments in May, the Australian Securities and Investments Commission (ASIC) has released the new, consolidated version.
The ASIC Corporations (Financial Services Guide, General Advice Warning and Advertising Related Relief) Instrument 2025/234 continues the relief currently provided through the previous, decade-old instruments.
In June, the Financial Advice Association Australia (FAAA) said it was supportive, for the most part, of the instruments in their current form. However, the association did note some existing challenges when it comes to general advice that should be addressed.
Namely, although the FAAA supported the “flexible approach” in LI 2015/540 allowing general advice providers to give a simplified general advice warning when providing oral general advice, the association did raise concerns regarding potential consumer confusion when it comes to distinguishing between general and personal advice.
The FAAA suggested that clients often understand that one-to-many general advice delivered through advertising, presentations and webinars or published articles is general in nature.
However, when it comes to one-to-one general advice, the distinction between general and personal advice is commonly misunderstood and could benefit from clearer explanations of the “pros and cons of each approach”.
“More could be done to alert these recipients of financial product advice to the limitations of general advice in both the written and verbal warnings,” the submission added.
The new legislative instrument retains almost the exact same wording as the prior instrument.
Under LI 2025/234, a financial services licensee and an authorised representative of a financial services licensee do not have to comply with subsection 949A(2) of the act in relation to the provision of general advice orally to a person as a retail client if, at the time of providing the advice, the providing entity orally warns the client that:
- The advice is general advice.
- The advice may not be appropriate for the client.
What could go wrong with this I wonder.
This is ASIC reducing red tape. Another Legislative Instrument to add to the mountain of legislation, regulations, legislative instruments, regulatory guides and INFO sheets.
Setting it up so Industry funds can provide advice over the phone without any paperwork required…yet if a financial adviser wants to do the same they need to do a mountain of paperwork.
Yep so obvious the aim for Industry Super Funds flogging FUM via Uneducated, Unqualified BackPacker call centres and dressing it up as Advice.
RC 2.0 will be guaranteed
Super charged two-tiered playing field ahead.
In my opinion, ASIC has no intention of stopping their strangulation of financial advisers.
Time for a Royal Commission into them. Their record has been truly awful.