The Australian Securities & Investments Commission (ASIC) has released an information sheet on records of advice (ROA) to further educate financial advisers and advice licensees about their obligations when using ROAs to provide personal advice to retail clients.
The guidance, named INFO 266 FAQs: Records of Advice (INFO 266), answers frequently asked questions (FAQs) about ROAs, including their usage, preparation, and record keeping. It also addresses some common misconceptions around ROAs, outlines four exemptions from providing a statement of advice, and explains the meaning of “significantly different” (under the law) when providing personal advice in a further advice situation.
Moreover, the information sheet includes four ROA examples to help advisers understand the relevant requirements under the Corporations Act 2001.
The release of the ROA information sheet follows ASIC's decision to extend its temporary COVID-19 relief measures to help the financial advice industry provide consumers with affordable and timely advice during the pandemic.
Last year, the government introduced the ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2020/355 as part of its COVID-19 pandemic response, with one of the relief measures focusing on providing clients with an ROA.
In October 2021, the regulator decided to extend the ROA relief measure until April 15, 2022, allowing financial advisers to provide an ROA, rather than a statement of advice, to existing clients requiring financial advice.
The ROA information sheet is the first of ASIC's initiatives developed in response to the financial advice industry's recent feedback on its consultation to improve consumers' access to affordable advice.
“ASIC is committed to supporting the advice industry in its efforts to ensure everyday Australians can access quality advice at a reasonable price,” said ASIC Commissioner Danielle Press. “We will continue to engage with industry and prioritise initiatives that address its concerns about cost and regulatory uncertainty.
“We expect this practical guidance and information will provide clarity and certainty to financial advisers about when and how they can use ROAs.”
