ASIC extends finserv record of advice Covid relief

ASIC will extend one of three temporary relief measures designed to help the financial advice industry during COVID-19.

Financial advisers will be allowed to continue to provide records of advice, rather than statements of advice, to existing clients after moves by the corporate regulator on Thursday.

The Australian Securities and Investments Commission announced it would maintain the temporary relief around statements of advice until October 15 this year.

But two other areas of temporary relief are set to end of Thursday after the regulator declined to renew them.

Advisers are still required to keep a brief explanation of the changes in a client’s personal circumstances in relation to the COVID-19 advice and a brief of recommendations made to a client.

But the move still only applies to past clients of advisers and new clients are required to be given a statement of advice.

The move to extend the measure comes after ASIC consultation with the industry.

The regulator noted in its update on Thursday that the change made in 2020 had been welcomed by the industry who had “found this measure helpful”.

Under the measure when first introduced fees for records of advice were capped at $300.

ASIC noted it would continue to monitor the appropriateness of the temporary relief related to the records of advice and demand for financial advice.

The regulator has previously warned it would conduct surveillance activities to monitor the advice provided under the relief, to ensure advisers were acting in the best interest of clients.

ASIC flagged it could look to further extend the temporary relief beyond October 15 or even nix it before the set expiry date should conditions change.

But ASIC declined to renew the two other relief measures imposed by the regulator early in the pandemic which were linked to early release of superannuation.

ASIC had permitted tax agents to give advice to existing clients about the implications of the early access to superannuation scheme without the need to hold an Australian financial services license.

The regulator had also issued a temporary no-action position for superannuation trustees in a bid to expand the scope of personal advice that could be provided.

ASIC noted industry feedback had made it clear to the regulator the urgent advice measures were “no longer necessary”.

The measures extended and ended on Thursday formed part of a suite of responses rolled out by ASIC early in the pandemic, including delays to the collection of life insurance advice client files until the second half of 2020 and a slow down in work on grandfathered conflict remuneration.