Financial Planners Given More Time
The Age
Tuesday June 19, 2007
THE corporate regulator has agreed to give financial planners extra time to give formal written advice to retail investors as people flock to boost their superannuation accounts and meet the June 30 deadline to lock in tax-free benefits.
The industry has been lobbying for more time as financial planners struggle to cope with the onerous paperwork associated with written Statements of Advice that planners must give clients within five days of them seeking advice.The Australian Securities and Investments Commission issued a statement last night saying it would extend time for Statements of Advice to be lodged in relation to superannuation inquiries, to 30 days."ASIC supports the view of industry associations that it is important that, as far as possible, those making superannuation decisions in this period have access to advice from licensed professionals," the statement said.But the statement said the rules about giving advice remained unchanged."Crucially, this includes the advisers' obligations to give quality advice that takes into account a client's needs and circumstances," it said."Investors' rights to take action for losses resulting from non-complying advice are also unchanged."Investment and Financial Services Association chief executive Richard Gilbert welcomed the decision. He said it would help more retail investors get financial advice in the few days before the superannuation changes start on July 1.He said financial planners had been forced to turn away customers because the planners were bogged down by paperwork."IFSA applauds the flexibility and pragmatism demonstrated by the regulator," he said.
© 2007 The Age
