In a statement released on Monday, ASIC announced that until the end of September, all non-essential work would be set aside to focus on the challenges created by the coronavirus pandemic.
“Until at least 30 September 2020, the other matters that ASIC will afford priority are where there is the risk of significant consumer harm, serious breaches of the law, risks to market integrity and time-critical matters,” the regulator said.
ASIC added it had suspended a number of consultation papers, regulatory reports and reviews that were not time critical, including report on executive remuneration, updated internal dispute resolution guidance and a consultation paper on managed discretionary accounts.
However, the regulator confirmed to ifa that consultation timings for its recently released Consultation Paper 329 around annual opt-in requirements and independence disclosures for advisers would be proceeding to the previously agreed timetable, given the proposed 1 July start date of the new rules.
“We are still working to ensure that the instrument can be made by 1 July, however given current circumstances, we understand that industry may have difficulty in the responding to the CP,” an ASIC spokesperson said.
“If that is the case, we are happy for them to contact us and discuss their comments by phone, or make other arrangements.”
ASIC said that while it would continue to investigate misconduct “where public interest warrants us to do so”, it would focus on action “necessary to prevent immediate consumer harm, egregious illegal conduct and other time critical matters”.
The regulator added it would also work with financial institutions to accelerate the payment of outstanding remediation to customers.
Elsewhere, AFCA said it would modify its approach to dispute resolution as a result of the crisis, taking into account the “unprecedented circumstances” many financial services businesses found themselves in when considering new complaints.
The ombudsman said it had established a support hotline to ensure a priority service for consumers affected by COVID-19, and that these complaints would be “prioritised and fast-tracked” to ensure issues were resolved as quickly as possible.
“AFCA encourages financial firms to continue to work constructively and reasonably with affected consumers and small businesses during any period of disruption, particularly consumers and small businesses in hardship, [as well as] openly and transparently communicating with consumers and small businesses about any delays they may experience in decision making, claims or complaints handling caused by the impact of COVID-19 on their business,” the ombudsman said.
Isn’t it interesting to see that despite a global shut down of economies, mass unemployment, markets in turbulence and the government frantically trying to escape recession that cancer-ridden agency called ASIC is still determined to rush through these stupid Opt-In laws and cause as much disturbance and inconvenience to financial planners as they possibly can! Here comes another piece of paper in the 300-page SoA & PDS to inform the client why we are not independent and the customer won’t even care to read or know about it!
“In other news, Australia’s unemployment rate has hit 30% and ASIC passed through more legislation raising education standards for financial advisers”
Basically no matter what comes of the CP the governments attitude is that it will go ahead anyway……..
ASIC and the Government’s ridiculous nanny-state rules, guidances and regulations are resulting in Australian’s having missed the boat in huge numbers with the market turbulence that’s been present the last few weeks. Instead of being able to provide and action advice urgently for those with investments, we’ve instead had to reinforce that they need to wait on updated Fact Finds, then SoAs/RoAs just to determine whether or not they should sell, hold or buy. By the time these processes have been followed to keep ASIC happy, of course it’s too late. The advice they could get from their Stockbroker or Private Banker or even Accountant (off the record of course) has once again been delivered in a more timely and appreciated manner than the professionals who are best placed to provide it to them – Financial Planners. Great work ASIC – you’ve managed to take a necessary industry and rape and pillage the %*$# out of it, thereby screwing the consumers out of billions this time. It’s time for a RC into ASIC’s behaviours and actions
This could / Should trigger a rethink of everything in the aftermath. cumbersome compliance meaning slow response times to dramatic events, removal / severe reduction of (life) commissions (a la Hayne) mean those who will be severely cash strapped afterwards wont get the advice they otherwise deserve. it’s a disaster as predicted and needs urgent addressing now.
Hopefully someone finds a cure for the FARSEA & ASIC virus’ ín the meantime
Time for ASIC to get rid of their BS compliance requirements – let qualified adviser help as many people as possible!
Whats ASIC going to be regulating if the whole financial system is down the toilet? time for the government to cut costs and cull a whole bunch of ineffective public servants.
ASIC living in a parallel universe – may as well get FPs on the dole queue like everyone else!
Sarah – Parliament doesn’t sit till August again – none of this can start from 1 July.
Let’s see what this crisis flushes out in terms of bad behaviour that gets uncovered. Probably too early for those funds to get into trouble that piled into illiquid assets – they can simply postpone revaluations, making them look good – unless they get lots of redemptions.
Yes the guru with no shoes springs to mind!