The Australian Securities and Investments Commission (ASIC) has released an information sheet on limited advice, after a targeted consultation with the industry.

INFO 267, Tips for giving limited advice, provides pointers and summarises the relevant guidance from Regulatory Guide 175 Licensing: Financial product advisers - Conduct and disclosure, and Regulatory Guide 244: Giving information, general advice and scaled advice.

It also contains information on what advice providers can do to meet their obligations under the law, including the best interests duty and related obligations as well as the Financial Adviser Standards and Ethics Authority (FASEA) Financial Planners and Advisers Code of Ethics when giving limited advice.

“ASIC recognises that many consumers prefer to seek limited and specific advice rather than comprehensive advice,” Commissioner Danielle Press said.

“We also understand that industry faces some barriers to providing limited advice, including a lack of clarity about the regulatory requirements.

“We expect this guidance will provide regulatory certainty to industry and help reduce compliance costs.

“It will assist financial advisers in their efforts to make these forms of advice more available to consumers and assist them in delivering quality advice in a timely, affordable, and compliant manner.”

ASIC has also provided an example statement of advice (SOA) to help advisers understand the relevant requirements under the Corporations Act 2001.

Click here for INFO 267 and here for the SOA example.