ASIC creates extension for urgent super advice SoAs

ASIC has given financial advisers more time to prepare a Statement of Advice for clients, to help people get urgent advice around the changes to superannuation taking effect on 1 July 2017.

ASIC has granted a temporary extension of time for financial advisers to provide retail clients with a Statement of Advice (SoA) for urgent superannuation advice, contained in the ASIC Corporations (Urgent Superannuation Advice) Instrument 17-530.

ASIC says the instrument “provides temporary and conditional relief from the requirement under s946C of the Corporations Act to 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.”

ASIC says the relief is intended to assist consumers access advice about the impending changes to superannuation during this “unusually busy period, while maintaining consumer protection”.

The regulator notes that some of the superannuation 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.”

Ordinarily SoAs are required to be given to retail clients as soon as practicable, though there can be a very short extension where time is critical.

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