The ASIC Corporations (COVID-19 – Advice-related Relief) instrument 2020/355 will be repealed on 15 October 2020, six months after it commenced. The relief measures included eliminating the need to provide an SOA when providing advice around early access to super, including when tax agents or in-house super fund advisers are providing such advice.
“ASIC had publicly stated that these relief measures were temporary and ASIC would repeal the instruments following the COVID-19 crisis,” ASIC said in a statement. “However, following feedback from the Senate standing committee for the Scrutiny of Delegated Legislation, ASIC has decided to amend these instruments to include specific end dates.”
ASIC also warned that it may be appropriate to end or extend the relief before the six-month period elapsed, but said that it would give “sufficient notice” before any early repeal or extension was implemented.
Is this the total Covid 19 assistance that the government has for Financial Advisers? A bit short I think.
Oh no…it seems they will be INCREASING fees so Shipton can get another increase on his already inflated salary….for doing little to advance our industry.
so australian super will now give me an soa?
the best SoAs are the ones where the clients contact the ATO direct. A good example of bureaucracy gone mad. Just doing paperwork simply to get your own money. Just insane.
SOAs really are a relic of the past. Should be retained for product replacement advice only.
Does this relief not prove that people can receive advice without requiring an unwieldy advice document? Now that all ‘conflicts of interest’ have been removed (except for insurance commission – treat that as you will), surely the SoA could be reduced to 10 pages or fewer (for all advice other than insurance)? All people really need to know is the reasonable basis, how it will benefit them and the cost to them (direct and indirect). It’s time for an overhaul of the system!
The fact that advisers have to do an SOA (along with 60 hours pa training, universtity qualifications, Best Interests Duty etc) to increase the benefit amount of a client’s life insurance due to a recent property purchase, when the person who sold that property and encouraged that person to leverage everything into an investment and 30 year mortgage does not have to do any compliance or training is ABSURD.
Hard to argue with your points – but ASIC seems to be making lots of money with the present system so I can’t see them letting that one go.