Quarterly compliance update June 2022
Below is a summary of the important updates and changes to be aware of so you can continue to meet your compliance obligations. If you have any questions relating to this update, or any other compliance-related matter, please contact Geoff Byrnes.
An election is coming…
Who knows who will win, but there will be some changes.
In terms of education requirements, at this stage they remain unchanged. If you are unsure of what you need to do, please feel free to contact me to discuss your requirements.
The industry is slightly weaker at the moment, with a drop in advisers to approximately 17,000. Also consider that there are only about 1,200 risk advisers still providing full advice within the industry. Could this be an opportunity? Perhaps.
Fee Disclosure Statements and Ongoing Service Agreements
A friendly reminder that Super/ Investor Directed Portfolio Services (IDPS) accounts that have not received their Ongoing Adviser Service (OAS) agreement form by 30 June 2022 will switch off ongoing advice fees on 1 July 2022.
With the new reporting regime for super funds, this is not a list you want to be on.
Please run your commission reports, and make sure all FDS and OAS agreements are up to date. I have had two advisers get questioned by product providers over nominal ongoing advice fees that the adviser didn’t even realise they were being paid from.
Note that if you miss your FDS windows by even a day, you will automatically terminate the ongoing advice agreement and legally you cannot deduct fees from the client’s account.
This will be on ASIC’s radar, with superannuation funds monitoring and reporting all activity. We have been focusing on this with your audits and want to assist your business in any way possible.
Consent forms from providers
There is always conjecture around this, but know that some providers use their own forms. Please check with a provider before providing a client with your own consent form as it may not be accepted by the provider.