ASIC Releases Updated Legislation for Financial Advice

0

Titled the ASIC Corporations (Financial Services Guide, General Advice Warning and Advertising Related Relief) Instrument 2025/234, the new legislation continues to provide the same relief established by the earlier instruments, which have been in place for over a decade.

In June, the Financial Advice Association Australia (FAAA) expressed broad support for the new instrument. Nonetheless, the association pointed out some existing hurdles, particularly concerning general financial advice.

The FAAA appreciated the "flexible approach" of the previous legislation, known as LI 2015/540, which allowed general advice providers to offer a simplified general advice warning during oral advice sessions. However, the association highlighted potential challenges for consumers trying to distinguish between general and personal advice.

Amid general support for public forms of general advice like those given via advertising, presentations, and webinars, the FAAA acknowledged that confusion often arises with one-on-one advice. They suggested that clearer explanations of the benefits and shortcomings of each advice type would help consumers better understand the distinctions.

The FAAA also added that more could be done to ensure that recipients comprehend the limitations of general advice, both in written and verbal formats.

Despite these concerns, the updated legislative instrument remains almost identical to its predecessor. Under LI 2025/234, financial services licensees and their authorised representatives are exempt from subsection 949A(2) of the Act when orally providing general advice to retail clients, provided they caution the clients that:

• The advice is categorised as general advice
• The advice might not suit the client’s specific circumstances

Published:Tuesday, 16th Sep 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

ASIC Releases Updated Legislation for Financial Advice

16 Sep 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has introduced a new, consolidated legislative instrument that relates to financial advice. This update follows through on ASIC's May announcement regarding the remake of three existing advice-related instruments. - read more

Commonwealth Bank Challenges RBA's Card Fee Reform

12 Sep 2025: Paige Estritori

Australia’s leading financial institution, the Commonwealth Bank of Australia, has openly criticised the Reserve Bank of Australia (RBA) for its calculations related to a proposed reduction in debit and credit card transaction fees. The RBA suggested that the reform would save Australian businesses $1.2 billion annually and benefit the majority of companies, a claim that the Commonwealth Bank strongly disputes. - read more

Ongoing Consumer Spending Surge Threatens Future Interest Rate Cuts

11 Sep 2025: Paige Estritori

Amid a period of robust consumer spending, Australia's mortgage holders may face limited future interest-rate cuts. The Commonwealth Bank has observed Australians increasing their spending over the last six months, spurred by rising incomes, a robust job market, and previously lowered interest rates. - read more

CSLR Funding Concerns as Special Levy Decision Remains Pending

11 Sep 2025: Paige Estritori

The Compensation Scheme of Last Resort (CSLR) recently highlighted potential delays in compensation payments due to insufficient special levy funds. In July, the CSLR's proposed FY2025–26 levy plan allocated $67.29 million for financial advisers, surpassing the $20 million limit set for the subsector. This shortfall of $47.29 million prompted the Treasury to initiate a consultation in August to determine funding solutions for the excess levy. - read more

Retiree Surge to Drive Demand for Financial Advisers in Australia

10 Sep 2025: Paige Estritori

A recent study by Adviser Ratings, as outlined in the 2025 Australian Financial Advice Landscape Report, indicates that the number of financial advisers in Australia will need to increase significantly. From the present count of 15,500 advisers, the industry is expected to require more than 50,000 over the next thirty years to cater to a growing retiree population. - read more

FAAA Advocates Balance in Non-Compete Reform for the Financial Sector

10 Sep 2025: Paige Estritori

The Australian government is examining potential reforms to non-compete clauses in employment contracts, driven by concerns that current laws may impede workers from advancing their careers and, in turn, hinder economic growth. In this context, the Financial Advice Association Australia (FAAA) has raised concerns about these reforms, urging that the proposed changes should balance the interests of both employees and employers. - read more

Aussie Incomes Lag in OECD Amid Productivity Concerns

09 Sep 2025: Paige Estritori

Australia has recorded a sluggish rise in real per capita household disposable income over the past decade, making it the slowest growth among major English-speaking countries. According to OECD data, from Q1 2015 to Q1 2025, Australian incomes only increased by 3.5%, starkly contrasted with Canada's 8.9%, the United States' 20.6%, and the United Kingdom's 8%. The OECD average during this period was 18.7%, further highlighting Australia's economic challenges. - read more

Click for more Finance News