How Many Licences Are Enough?

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Many financial services businesses offer services through a number of different entities, sometimes supported by a service company – but this does not necessarily mean each of the entities needs to hold its own Australian Financial Services (AFS) licence, according to Senior Lawyer at The Fold, Jaime Lumsden Kelly. “Essentially, there are two options,” Ms […]

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ASIC targets add-on insurance

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Ancillary or ‘add-on’ insurance, sold at the point of sale, is a new focus for ASIC in 2014, with all businesses selling general or life insurance, or offering credit as an ancillary offering, likely to be affected according to The Fold Legal (The Fold). The Fold’s managing director, Claire Wivell Plater said ASIC has already […]

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Opportunity for advisers in Limited MDA Platforms

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With the Australian Securities and Investments Commission (ASIC)’s 2013 proposal to change requirements around limited managed discretionary account (MDA) platforms appearing to be on hold for some considerable time, the time could be right for advisers to start including them in their suite of service offerings, according to The Fold Legal (the Fold). The Fold’s […]

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General Advice – Are you tempted?

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The removal of the ban on conflicted remuneration for general advice in the proposed changes to the Future of Financial Advice (FoFA) legislation may provide new opportunities for financial advice businesses who want to provide scaled advice, according to Claire Wivell Plater, managing director of The Fold Legal. “General advice is another form of scaled […]

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Privacy law deadline looms

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Advisers have until 12 March 2014 to ensure their privacy compliance measures meet new privacy principles. “The new Australian Privacy Principles require personal information to be handled in an open and transparent way,” says Lesley Thorne, senior lawyer from The Fold Legal. “This means financial advisers must be revisiting and updating their privacy compliance measures […]

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ASIC cracks down on websites and social media

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The Australian Securities and Investments Commission (ASIC) has recently cracked down on a number of financial services and credit businesses whose websites contain misleading content, according to The Fold Legal (the Fold). The Fold’s Charmian Holmes said ASIC has been particularly proactive about information that incorrectly states the interest rates for loans and savings accounts, […]

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Wholesale client tests too complex for SMSFs

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Six different ‘wholesale client’ tests and three different ‘sophisticated investor’ tests currently apply to financial services clients and deciding whether self-managed superannuation fund (SMSF) trustees are wholesale or retail is fraught with difficulty according to The Fold Legal (The Fold). “Get it wrong and advisers may breach the law,” says The Fold’s Senior Lawyer, Lesley […]

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ASIC speeding up licensee complaints process

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Recent changes to Regulatory Guide 165 (RG165) mean Australian Financial Services Licensees (AFSL)s must now acknowledge client complaints immediately, regardless of the form in which they are given, and resolve problems in tighter, prescribed timeframes. Charmian Holmes, solicitor director of The Fold Legal (The Fold) said it is that AFSLs need to adjust their current […]

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ASIC set to burn the churn

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The Australian Securities and Investments Commission (ASIC) will analyse life company records in order to find advisers who churn, according to Claire Wivell Plater, Managing Director of The Fold Legal. “It is pretty clear that ASIC would have liked to see life insurance commissions banned as part of the Future of Financial Advice reforms,” Ms […]

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Do you use a platform? You could be breaching the Best Interests Duty

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Recent guidance from the Australian Securities and Investments Commission (ASIC) confirms in no uncertain terms that the Best Interests Duty applies just as much, if not more, to platform recommendations as it does to investments. “We discovered the guidance around platform recommendations while reviewing RG148 on platforms,” says Claire Wivell Plater, Managing Director of The […]

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