ASIC has issued ASIC Corporations (Urgent Superannuation Advice) Instrument 17-530 (the Instrument) to temporarily extend the time financial advisers have to provide retail clients with a Statement of Advice (SoA).
The Instrument provides temporary and conditional relief from the requirement under s946C of the Corporations Actto provide a SoA when or as soon as practicable after personal advice is provided to a retail client.
The relief gives financial advisers up to 30 days to provide a SoA for personal advice provided to retail clients about a superannuation product in connection with the changes in laws regulating superannuation as a result of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 where the advice is requested and provided before 1 July 2017.
Financial advisers are still required to meet all other obligations under the Corporations Act, including the conduct and disclosure obligations, in providing such advice.
The relief is intended to assist consumers to access advice about the changes in the superannuation laws during this unusually busy period, while maintaining consumer protection.
Background
Section 946C of the Corporations Act provides that a financial adviser must give a retail client a SoA when or as soon as practicable after, personal advice is given and in any event before the providing entity provides the client with any further financial service that arises out of or is connected with that advice. In time-critical cases, the providing entity is permitted to give the SoA later. However, it must be given within five business days or, if the relevant financial product is subject to a cooling off period under s1019B of the Corporations Act , before the cooling off period commences.
The Government's Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 and related legislation introduce some important changes to the superannuation system with effect from 1 July 2017. Some of these changes have resulted in unusually high demand for financial advice in the period leading up to 1 July 2017. This has placed pressure on financial advisers delivering SoAs to clients within the statutory timeframes.