ASIC extends COVID-19 Relief for Advisors

ASIC has announced the extension and reintroduction of relief for financial advisors in response to the COVID-19 pandemic.

Last week, ASIC:

• Extended the “Record of Advice relief”, which allows financial advisors to provide existing clients with a Record of Advice, rather than a Statement of Advice, where the advisor is providing time sensitive advice about adverse effects caused by COVID-19; and
• Reintroduced relief allowing financial advisors 20 business days, rather than 5, to provide a Statement of Advice after time-critical advice has been provided to a client.

The further extended measures will run until 15 April 2022.

You can read our earlier article about ASIC’s temporary COVID-19 relief for the financial services industry here: https://mackaychapman.com.au/asic-enforcement-during-coronavirus-shutdown/

While the extended relief will provide welcome breathing space, financial advisors also need to remain aware of their obligation to keep a record of any COVID-19 advice which includes details of:

• The client’s relevant personal circumstances in relation to the COVID-19 advice;
• Brief particulars of the recommendations made; and
• Brief particulars of the information that would be required in a Statement of Advice if a replacement product was recommended, if applicable.

ASIC’s Media Release, along with copies of the relevant legislative instruments, is available at: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-269mr-asic-further-extends-temporary-financial-advice-relief-measures-in-covid-19-instrument/

If you are not sure about your obligations when providing financial advice to clients facing difficulty due to the COVID-19 pandemic, call us today to receive expert legal advice

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