Due to the pressure on the industry during the COVID-19 pandemic, ASIC has made several temporary relief measures for the advice industry.
In order to facilitate advice for consumers around the early release of super during COVID-19, ASIC has allowed advisers not to provide an SOA when advising on this topic. Further, registered tax agents are allowed to provide advice on early super release without holding an AFSL.
ASIC has also issued a temporary no-action position for super trustees to expand the scope of personal advice considered “intra-fund advice.”
These measures (including the no-action position) are subject to the following conditions:
- clients need to be provided with an ROA
- advice fees are capped at $300
- advice providers must establish the client in question is eligible for early release of super
- the client must have approached the adviser to seek advice around early super release
Beyond this, ASIC is also assisting advisers in meeting demands for time-critical advice by extending the maximum time for providing clients with time-critical SOAs from five business days to 30.
Regarding how long these measures will be in place, ASIC said it will “consider market developments and consult with key stakeholders before revoking the instrument of relief and provide 30 days’ notice to the industry.
“The no action position for superannuation trustees expires when applications for early release can no longer be made.”
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