The Australian Securities and Investments Commission (ASIC) has today published an information sheet regarding limited advice to assist licensees satisfy their legal obligations when providing this type of service to consumers.
“INFO 267: Tips for giving limited advice” summarises the guidance contained in “Regulatory Guide 175 Licensing: Financial product advisers – Conduct and disclosure” and “Regulatory Guide 244: Giving information, general advice and scaled advice”, provides tips on the subject and includes an example statement of advice (SOA).
The information sheet has been designed to assist practitioners providing limited advice in understanding not only what their obligations are under the law, but also the requirements placed upon them by the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics.
“ASIC recognises that many consumers prefer to seek limited and specific advice rather than comprehensive advice. We also understand that industry faces some barriers to providing limited advice, including a lack of clarity about the regulatory requirements,” ASIC commissioner Danielle 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.”
INFO 267 was developed as a result of targeted consultation with the financial advice industry, including its responses to “Consultation Paper 332 Promoting access to affordable advice for consumers”. It was this consultation paper where advisers expressed an updated example SOA that was shorter and more client friendly would be of great benefit.
FASEA was also consulted as part of the process and confirmed the example SOA satisfactorily covers off advisers’ obligations under its code of ethics.
“Our record of advice and statement of advice information sheets provide the practical guidance requested by financial advisers during our latest round of consultations,” Press said.
