ob体育

media release (21-294MR)

ob体育 releases guidance and examples on records of advice

Published

ob体育 has today released an information sheet on records of advice (ROA) and three ROA examples to provide clarity to financial advisers and advice licensees on their obligations when using ROAs to provide personal advice to retail clients.

INFO 266 FAQs: Records of Advice answers frequently asked questions (FAQs) about ROAs, including questions about their usage, preparation and record keeping. It explains four exemptions from providing a statement of advice and covers the meaning of 鈥榮ignificantly different鈥� (under the law) when providing personal advice in a further advice situation.

鈥楾his is the first of ob体育鈥檚 initiatives developed in response to the financial advice industry鈥檚 recent feedback on our consultation to improve consumers鈥� access to affordable advice. We expect this practical guidance and information will provide clarity and certainty to financial advisers about when and how they can use ROAs,鈥� ob体育 Commissioner Danielle Press said.

INFO 266 also addresses some common misconceptions around ROAs. The ROA examples, released alongside INFO 266, are annotated to help advisers understand the relevant requirements under the Corporations Act 2001.

This guidance follows ob体育鈥檚 recent release of an Example Record of Advice (ROA): COVID-19 relief measure that can be used when providing advice under the temporary relief until 15 April 2022.

ob体育 undertook targeted consultation on INFO 266 and the example ROAs and received helpful and timely feedback from industry. ob体育 also consulted the Financial Adviser Standards and Ethics Authority (FASEA) on the ROA examples and welcomes FASEA鈥檚 confirmation that they are consistent with advisers鈥� obligations under the .

In developing INFO 266 and the ROA examples, ob体育 considered the advice industry鈥檚 response to recent consultations, including Consultation Paper 332 Promoting access to affordable advice for consumers (CP 332) and the roundtable discussions that followed. Industry asked for shorter, simpler and more user-friendly regulatory guidance and practical examples from ob体育. Responses from CP 332 indicated that greater use of ROAs would decrease the cost and time of delivering advice.

鈥榦b体育 is committed to supporting the advice industry in its efforts to ensure everyday Australians can access quality advice at a reasonable price. We will continue to engage with industry and prioritise initiatives that address its concerns about cost and regulatory uncertainty,鈥� Ms Press said.

ob体育 considers INFO 266 and the ROA examples can assist industry participants in providing good-quality, affordable personal advice to consumers.

Background

In November 2020, ob体育 released CP 332 to seek input from financial advice industry participants and stakeholders to understand the issues and impediments impacting the supply of good quality affordable personal advice. ob体育 sought input on the practical steps that can be taken by ob体育 and the industry to improve consumer access to quality personal advice (20-285MR).

ob体育 received an unprecedented 466 submissions from the industry and relevant stakeholders. In April 2021, ob体育 held roundtables to discuss the key issues raised in the submissions to CP 332 and to consider potential solutions. For more information, see a summary of industry response.

For the latest information about regulatory issues impacting the financial advice industry as a result of the COVID-19 pandemic, including the recently released example ROA, visit ob体育鈥檚 COVID-19 information for financial advisers and advice licensees.

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