ASIC extends temporary financial relief for financial advice industry

ASIC extends temporary financial relief for financial advice industry | Insurance Business

ASIC extends temporary financial relief for financial advice industry

The Australian Securities and Investment Commission (ASIC) has decided to extend one of three temporary relief measures to help the financial advice industry during the COVID-19 pandemic.

The original relief measures, announced on April 14, 2020, are set out in ASIC Corporations (COVID-19–Advice-related Relief) Instrument 2020/355.

Instrument 2020/355 expired on Wednesday (April 13). However, ASIC decided to extend it after consulting with the industry and identifying that some financial advice practices have found this measure helpful during the pandemic.

Meanwhile, the regulator decided not to extend the “early release of superannuation measure” because the government's Early Release of Superannuation Scheme concluded on December 31, 2020. It also refused to extend the “urgent advice measure” following industry feedback that it was no longer necessary.

ASIC extended the record of advice relief measure to October 15, 2021. It is set out in a new legislative instrument ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2021/268.

ASIC will continue to monitor the appropriateness of the temporary relief related to records of advice in light of the impact of the COVID-19 pandemic on financial advice demand. If appropriate, the regulator will end the relief before the six-month period or extend it. It will inform the industry before implementing any early repeal or extension.