Lodge online

Register for online access

How to lodge

Download paper forms

Search all forms

Search ASIC registers

Within: 

Search financial services/credit licensees and representatives, liquidators, auditors and more

Professional registers

--------------------------------------------------

More information

Lodge online

decrease text size increase text size print page
11–152MR ASIC consults on how to scale advice

Thursday 28 July 2011


ASIC today released a consultation paper proposing new guidance for people who give advice to retail clients.

This builds on ASIC Regulatory Guide 200 Access to advice for super fund members (RG 200) and ASIC’s Report 224 Access to Financial Advice in Australia (REP 224) in December 2010. This report found that one third of Australians now prefer piece-by-piece advice rather than holistic or comprehensive advice.

It also follows the update announcement by the Assistant Treasurer and Minister for Financial Services and Superannuation, Minister Bill Shorten, in April 2011 on the Future of Financial Advice reforms.

ASIC Chairman Greg Medcraft said: ‘Many Australians would like more information and advice before making a decision in relation to a financial product. This will help them to be confident and informed investors. The proposals outlined in ASIC’s consultation paper aim to improve access to advice and give guidance about how simple, piece-by-piece advice can be provided by anybody in the advice industry.’

ASIC’s Consultation Paper 164 Additional guidance on how to scale advice (CP 164) gives guidance about how to scale financial product advice to retail clients, and includes eight examples of giving information and advice to clients about:

CP 164 also describes the differences between factual information, general advice and personal advice.

This is the first phase of consultation on how to scale advice. Based on feedback to this consultation paper, ASIC will produce further examples of factual information, general advice and scaled personal advice on other topics in phase two.

Submissions to CP 164 close on Thursday, 8 September 2011.


Background


Section 945A of the Corporations Act 2001 contains a ‘suitability rule’. To give suitable advice, as an AFS licensee or an authorised representative you must:

The new guidance in CP 164 explains how you can scale advice in a way that complies with s945A.



Download:

decrease text size increase text size print page