Australian Financial Services Licensing (AFSL) Forum

#4120 Reply

Hi,

 

No doubt you’re familiar with ASIC Regulatory Guides 175 and 244, which outline the requirements for providing general and personal advice.  We also suggest you read ASIC’s Report 337 ‘SMSFs: Improving the quality of advice given to investors’.

 

The law doesn’t specify that you must provide personal advice in relation to SMSFs, it simply identifies the elements of general and personal advice.  We are aware of some dealer groups that provide SMSF related advice under a general advice model.  However, these dealer groups have developed a formal process for providing advice in this manner and have strict training and supervision frameworks.  Before undertaking a strategy of providing SMSF advice under a general advice model, we would suggest that you seek legal advice as it’s potentially risky, both from a regulatory perspective and in terms of potential exposure to claims.

 

Author: Katherine Marchant

 

  • Free answers to common Financial Services Regulation (FSR), Consumer Credit and AML/CTF issues.

    Click here to join our LinkedIn group for responsible managers and compliance professionals.
    joinUsOnLinkedIn
  • Training

    Regulatory Compliance Training for Directors, Responsible Managers and Compliance Staff

    View Courses

  • Legal Advice

    Review your AFSL or ACL disclosure documents, conduct a licensee audit and more…

    Get Legal Advice

  • Compliance support

    The HN Hub – an online platform built to support Responsible Managers and Compliance Staff

    More