ASIC Releases Guidance and Examples on Records of Advice

The Australian Securities and Investments Commission (ASIC) has released last week an information sheet on records of advice (ROA) and three ROA examples to provide clarity to financial advisers and advice licensees on their obligations when using ROAs to provide personal advice to retail clients.

According to the official press release, INFO 266 FAQs: Records of Advice answers frequently asked questions (FAQs) about ROAs, including questions about their usage, preparation and record keeping. It explains four exemptions from providing a statement of advice and covers the meaning of 'significantly different' (under the law) when providing personal advice in a further advice situation.

Besides, INFO 266 addresses some common misconceptions around ROAs. The ROA examples, released alongside INFO 266, are annotated to help advisers understand the relevant requirements under the Corporations Act 2001.

"This is the first of ASIC's initiatives developed in response to the financial advice industry's recent feedback on our consultation to improve consumers' access to affordable advice. We expect this practical guidance and information will provide clarity and certainty to financial advisers about when and how they can use ROAs," said ASIC Commissioner Danielle Press.

ASIC considers INFO 266 and the ROA examples can assist industry participants in providing good-quality, affordable personal advice to consumers.