ASIC Announces No Action Position on FDS and Opt-In for Victorian Advisers
This afternoon ASIC has announced a No Action Position on FDSs and Opt-In for Victorian advisers during the COVID 19 lockdown. This relief comes at the request of the AFA and other associations.
The relief differs between pre and post FoFA clients due to the application of an automatic termination provision for post FoFA clients, where either the FDS is not issued on time or where the Renewal/Opt-In Notice is not received before the deadline. ASIC does not have the powers to override this automatic termination provision for post FoFA clients.
This means that where an FDS has not been issued within the 60 day deadline for pre-FoFA clients, between 2 August 2020 and 26 October 2020, advisers will have until 7 December to issue the FDS.
ASIC will take no regulatory action, where an adviser has been unable to complete the FDS and Opt-In process for a post FoFA client between 2 August 2020 and 26 October 2020, however due to the automatic termination provision, advisers will need to notify the clients and seek to re-establish the ongoing fee arrangement. This can be done by getting the client to sign a new engagement letter, or by issuing a new SoA.
This relief only applies to advice businesses where they are solely, or a substantial part of the business is, located in Victoria
Director at Collective Financial Partners
4 年Nathan Stanton
Founder, SMART Compliance Pty Ltd
4 年Be fascinating to research client satisfaction during this time with view to getting rid of FDS and Opt In altogether. This NAP just shows ASIC can do it if they want to.
Experienced senior professional in Risk & Assurance; Regulatory Change; Regulatory Compliance; Financial Services Licensee Policy & Education. This is my personal LinkedIn page. All comments are personal opinion only.
4 年Common sense.
Experienced Financial Advice Professional
4 年Thanks Phil. Do you have a ASIC website link for this announcement