ASIC’s announcement that they are granting “relief to industry to provide affordable and timely financial advice during the COVID-19 pandemic” has been met unfavourably by advisers responding to a snap poll on the measures. The relief measures specifically target advice around accessing superannuation early, as per the government’s recent contentious policy aimed at easing the financial fallout of the Covid-19 pandemic.
The poll found advisers were generally against the measures by a ratio of two to one. There were several contentious aspects to the legislative instrument. Most concerning from the advice industry’s point of view was the new ability for tax agents and accountants to be able to “offer advice” to someone interested in accessing their superannuation early, despite not being covered by an AFSL – as is the case with financial planners.
It is understandable many advisers are broadly unsupportive of concessions offered to other non-licensed finance sector professionals. Given the regulatory obligations and obsessive scrutiny faced by advisers over the last few years it is logical that many may resent the “free kick” being given to accountants, and also fear the potential negative repercussions for “advice” gone wrong.
It’s not just the possible negative implications of offering advice that will affect an individual’s superannuation – from people who may not have an understanding of the super fund in question and its mechanics. Many advisers also see it as a slap in the face to their profession.
A sample of the feeling includes the following objections:
Many advisers have years of experience and have had to sit the FASEA exam, have to complete product comparisons and are fully aware of their client’s reliance or otherwise of super and where it fits into their financial plan. We’re just getting to the point of cleaning up the industry and avoiding issues advisers have previously faced – then the regulators come up with this! The concern is that once the immediate impact of these things can be assessed there will be many negative issues caused by those not experienced and the whole industry will be painted with the same brush…
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