Scaled advice will be possible under the new Best Interest duty, according to the Australian Securities and Investments Commission (ASIC).
Speaking at the regulator’s Summer School in Sydney this week, ASIC’s Senior Executive Leader, Strategy and Policy, John Price, said it was the view of the Commission that scaled advice would not be subject to a full fact-find process.
“From ASIC’s point of view, and we can only discuss our point of view, we do believe it’s possible to provide scaled advice under the current drafting of the Best Interest duty that’s before Parliament. We’ve previously stated that a full fact-find is not required in all circumstances, and we do intend to provide guidance on how a client fact-find can be limited or expanded depending on the complexity of the advice that’s being requested.”
Mr Price said he believed scaled advice was clearly a market opportunity for advisers, citing a 2010 survey conducted by ASIC which found that one-third of respondents indicated a preference for advice on specific issues, rather than receiving a comprehensive financial plan.
“And the benefits for consumers of scaled advice? Lower cost advice, improved access to advice on the things that consumers really want to know about, and hopefully, where advice is given on discreet topics, it might be easier to understand and absorb,” he added.
