ASIC reveals further detail about scaled advice consultation
The corporate regulator has stated that its consultation on scaled advice will be focused on the hurdles with providing limited advice rather than providing specific definitions on what constitutes scaled or limit advice.
Speaking in a panel session at the FSC’s virtual Future of Advice Summit on Tuesday, ASIC commissioner Danielle Press said the regulator’s upcoming scaled advice consultation will be looking at what is getting in the way of giving good scaled advice.
“I think there’s lots of different words for it, but it’s about what are the barriers to providing scaled advice. It’s not about putting hard lines in, because hard lines aren’t necessarily helpful,” she said.
Ms Press said removing barriers to the delivery of scaled advice was a priority for the regulator given increasing consumer demand for specific, low-cost advice around particular financial issues.
“It’s about saying what is it in our guidance that the industry thinks is stopping them giving limited advice, because we hear all the time that the regulator doesn’t like scaled advice, but our position is that scaled advice is what most customers want,” she said.
“So, we want to know what it is that we can do differently, how do we better approach the guidance we are giving, how can we simplify the message we’re giving, as opposed to redefining advice boundaries.”
Ms Press cautioned that some of the improvements that needed to be made to facilitate the delivery of scaled advice may be the responsibility of government rather than ASIC.
“When we do this consultation, we will get a lot of feedback, and some will be regulatory and some will be legislative,” she said.
“There is a confusion about what levers we can and can’t pull. This is not about finding legislative fixes, it’s finding what is in the control of ASIC — although having said that, we will be sharing that information with the Treasury so they can share it with government as they see fit.”
