Journal

Posted April 21, 2020

Posted By Meghann Cannon

ASIC Relief for SOAs and Time Critical period extended

Prepared by Catherine Evans

ASIC has granted relief for affordable and timely financial advice during the current pandemic.

Advice on early access to super

·      No requirement for a SOA when providing advice about early access to superannuation.

·      Registered tax agents can give advice to existing clients about early access to superannuation without needing to hold an AFSL.

ASIC’s relief and no-action position are temporary and subject to the important conditions, including:

·      clients must be provided with a ROA, which meets content requirements. 

·      the advice fee, if any, is capped at $300;

·      adviser must establish that the client is entitled to the early release of their superannuation; and

·      the client must have approached the adviser for the advice.

Longer period to give SOA in time critical situation

ASIC has provided temporary relief to give advisers up to 30 business days (instead of 5 business days) to give an SOA after time-critical advice is provided.

Relief to enable ROA to be given in certain circumstances

ASIC has provided temporary relief to allow the provision of a ROA to existing clients even though:

·      the clients’ personal circumstances have changed as a result of the COVID-19 pandemic; and

·      the client sees an adviser from the same AFS licensee or practice, not their original adviser.

How long will this continue?

ASIC will consider market developments and consult with key stakeholders before revoking the Instrument of relief and provide 30 days’ notice to the industry. 

See here for the full media release: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-085mr-asic-grants-relief-to-industry-to-provide-affordable-and-timely-financial-advice-during-the-covid-19-pandemic/

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