ASIC has committed to making a number of changes over the next year or two to improve the way it communicates the requirements for providing compliant financial advice, according to the AFA.
It says the the Parliamentary Joint Committee on Corporations and Financial Services, which is responsible for the oversight of ASIC, held its most recent hearing with ASIC on 19 March 2021, which was also the first hearing conducted under the new PJC Chair, Andrew Wallace, who is the LNP Member for the Sunshine Coast seat of Fisher.
The statement says that Andrew Wallace and Liberal National Party MP, Bert van Manen, asked questions about the rising cost of financial advice. They inquired as to what action ASIC is taking to reduce the cost of advice and to rationalise the documentation that advisers are required to provide.
“ASIC spoke to the work that they are doing and committed to making a number of changes over the next year or two to improve the way they communicate the requirements for providing compliant financial advice,” the AFA says.
In its message to members, association says it has recently met with Wallace and knows that he is in regular contact with financial advisers from within his electorate.
It says Wallace asked a number of important questions, including “…a detailed question on Fee Disclosure Statements and getting to the bottom of the fundamental difference between how Fee Disclosure Statements are produced by financial planning systems and what ASIC expects.
…ASIC openly acknowledged that this was a legislative problem and that they will be talking to Treasury about how this problem can be fixed…
“This question got to the core of the issue with timing differences, GST/RITC issues, and small differences. ASIC openly acknowledged that this was a legislative problem and that they will be talking to Treasury about how this problem can be fixed.”
The AFA says it has been calling on the Government to fix this issue for more than a year, and notes that Parliamentary hearings are an important part of the governance process with respect to the oversight of ASIC and Government agencies.
“We pay close attention to these hearings in order to understand the key issues and to ensure that we are across the emerging issues.”
Click here to watch a short video of the PJC questions highlighted by the AFA.