ASIC today released Regulatory Guide 200 Advice to super fund members, to enable super fund trustees and financial advisers to give more information and advice to members about the member’s existing interest in their super fund.
ASIC has given conditional class order relief from the requirements of section 945A of the Corporations Act where licensed super fund trustees give personal advice to members about their existing interest in a fund on certain limited topics.
The Regulatory Guide confirms that personal advice given under s945A is scalable and that the concepts can be applied outside of the intra-fund context. This provides assurance to the financial planning industry, including outsourced financial advice providers of super fund trustees, that they are able to provide scaled advice within the boundaries of the current law.
ASIC Chairman Mr Tony D’Aloisio said, ‘The aim of providing this regulatory relief and guidance is to clarify existing law and increase super fund members’ access to advice about their existing interest in a super fund.
‘The Regulatory Guide provides guidance around what is factual information, general and personal advice. It provides clarity to financial advisers wishing to provide scaled intra-fund advice and facilitates super fund trustees giving intra-fund advice where they alternatively rely on the relief,’ Mr D’Aloisio said.
The Regulatory Guide is supplemented by practical examples illustrating how super fund trustees and financial advisers can provide factual information and advice to members on issues like investment options, contributions, insurance and financial hardship.
What does the regulatory guide do?
The Regulatory Guide 200 Advice to super fund members:
-
discusses the conditional class order relief in CO 09/210 ASIC has given to licensed super fund trustees;
-
provides guidance on the boundaries between factual information, general advice and personal advice when super fund trustees and financial advisers (including outsourced providers) communicate with members about their existing interest in a super fund; and
-
describes how factual information and advice can be given to super fund members using a variety of delivery methods and channels.
Scope of relief and guidance
ASIC’s Regulatory Guide and Class Order [CO 09/210] deal specifically with advice about a member’s existing interest in a super fund. Class Order [CO 09/210] applies only to super fund trustees or their authorised representatives. The guidance and relief applies in certain circumstances, and does not cover more complex personal advice about super, including switching, or retirement planning advice.
The relief applies to all super funds (other than self-managed super funds), but to rely on the relief, super fund trustees will need an Australian financial services licence with a personal advice authorisation. Those super fund trustees who do not meet the requirements of the relief must comply with section 945A when providing personal advice.
Download:
-
Class Order CO 09/210, explanatory statement and regulation impact statement