ASIC extends COVID-19 relief for financial advice
The Australian Securities and Investments Commission (ASIC) is extending the temporary relief for financial advice and capital raisings due to the continuing uncertain impacts of COVID-19, including the extension of the financial advice relief related to the COVID-19 early release of superannuation scheme.
ASIC said it would extend the COVID-19 financial advice relief due to the extension of the scheme by the Government.
It would continue to monitor the appropriateness of the relief measures and could then either extend or end it, upon what it deems sufficient notice.
The financial advice relief and the no-action positions for superannuation trustees providing intra-fund advice aimed to assist the industry in providing consumers with affordable and timely advice during the COVID-19 pandemic and were originally announced on 14 April, 2020.
The capital raising relief aimed to assist listed entities affected by the COVID-19 pandemic to raise capital in a quicker and less costly way without undermining investor protection and was originally announced on 31 March, 2020.
To extend relief, ASIC registered the ASIC Corporations (Amendment) Instrument 2020/862, which meant:
- The earlier amendment to the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 would now be repealed on 1 January, 2021 (instead of 2 October, 2020);
- The ASIC Corporations (Trading Suspensions Relief) Instrument 2020/289 would now be repealed on 1 January, 2021 (instead of 2 October, 2020); and
- The ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355 would now be repealed on 15 April, 2021 (instead of 15 October, 2020).
ASIC also amended its no-action position for superannuation trustees to extend it until 31 December, 2020, to align with the extension of the COVID-19 early release of superannuation scheme.
AUTHOR
Chris Dastoor
Recommended for you
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
Two financial advisers have shared with Money Management why they opted to specialise in certain client niches when setting up their own business.
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
