ASIC extends temporary financial advice relief measure

The record of advice relief measure has been extended by ASIC to 15 October 2021 and is set out in a new legislative instrument, ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2021/268. 

The relief measure allows financial advisers to provide a record of advice rather than a statement of advice to existing clients requiring financial advice due to the impact of the pandemic.  

The regulator said it decided to extend the relief measure after consulting with the industry and identifying that some financial advice practices have found this measure helpful. 

However, the other two measures set out in ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355 will not be extended. 

“This is because the ‘early release of superannuation measure’ is no longer needed because the government’s Early Release of Superannuation Scheme concluded on 31 December 2020,” ASIC said.

“The ‘urgent advice measure’ was not extended following industry feedback that the relief was no longer necessary.”

ASIC’s records of advice relief creates two new situations when a record of advice (RoA) can be used instead of an SoA: one for existing clients and the other which is also available for new clients and which is partly directed at intra-fund advice.

The temporary relief allows the provision of an RoA to existing clients even though the clients’ personal circumstances have changed as a result of the COVID-19 pandemic and if the client sees an adviser from the same AFS licensee or practice, not their original adviser.

The regulator stated it will continue to conduct surveillance activities to monitor the advice provided under this relief, to ensure that advisers, registered tax agents and superannuation trustees are acting in the interests of their clients and members.

“ASIC will continue to monitor the appropriateness of the temporary relief related to records of advice in light of the impact of the COVID-19 pandemic on the demand for financial advice,” ASIC added.

“If appropriate, ASIC will end the relief before the six-month period or extend it. ASIC will give sufficient notice to industry before any early repeal or extension is implemented.”