IFSA supports Treasury proposal on SOA threshold
The Investment and Financial Services Association (IFSA) has broadly welcomed a proposal by the Parliamentary Secretary to the Federal Treasurer, Chris Pearce, to introduce a $10,000 threshold for the issuing of a full Statement of Advice.
It also supported a related proposal for a ‘record of advice’ to be kept by financial planners in relation to amounts smaller than the $10,000 threshold.
The threshold is one of a number of proposals contained within the Corporate and Financial Services Regulation Review — Proposal Paper, which IFSA has provided feedback on in a submission to Treasury this week.
Industry feedback on the proposals is intended to assist Treasury in the formation of various draft regulations as part of the Corporate and Financial Services Regulation Review.
IFSA submitted that the proposed threshold is “capable of providing meaningful relief to advisers, with some amendments, and therefore significantly expanding access to robust financial advice”.
However, it did not support the proposed exclusion from the threshold of superannuation and retirement savings accounts and insurance, including life risk insurance and sickness and accident.
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