Without legal definition assets consultants are in the clear

15 December 2020
| By Mike |
image
image
expand image

Asset consultants are in the clear. So far as the Australian Securities and Investment Commission (ASIC) is concerned they should not be regarded in the same context as financial advisers. 

What is more, ASIC says asset consultation is not a legally defined concept in the corporations legislation. 

Having been asked a question by NSW Liberal back-bencher, Jason Falinski about Frontier Investment Advisers describing itself as being “Australia’s leading independent asset consultant”, ASIC has suggested that Frontier probably shouldn’t feel as constrained about using the term “independent” as a financial adviser. 

 Answering Falinski’s question on notice, ASIC said that, generally, the financial services industry uses the term ‘financial advice’ when individuals are given advice on their personal finances. 

“The term ‘asset consultation’ is commonly understood in the financial services industry to mean advice given to institutions regarding how assets could be invested on behalf of others to attain an investment objective,” ASIC said. 

“A person who provides asset consultation – an asset consultant – would ordinarily be engaged by a wealth manager, such as a superannuation fund trustee,” it said. 

“An asset consultant would advise on matters such as the merits of possible investment strategies and asset allocations, and the selection of service providers, such as investment managers.” 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago