ASIC Proposes To Remake Three Financial Advice-Related Legislative Instruments

ASIC is seeking feedback on its proposal to remake three legislative instruments relating to financial advice into a single instrument and extend it for a further five years. The legislative instruments are scheduled to sunset on 1 October 2025.

The legislative instruments are:

We have assessed that these legislative instruments are operating effectively and continue to form a necessary and useful part of the legislative framework. Aside from minor changes, the content of these instruments will remain largely unchanged.

Under the Legislation Act 2003, all legislative instruments are automatically repealed, or ‘sunset’, after 10 years, unless ASIC takes action to preserve them.

Providing feedback

ASIC invites feedback on this proposal. Submissions should be sent by 5pm AEST on 12 June 2025 to rri.consultation@asic.gov.au

Background

ASIC Instrument 2015/539 exempts financial product issuers from the requirement to hold an Australian financial services (AFS) licence for general advice in an advertisement for their product, provided the advertisement states that a person should consider whether or not the product is appropriate for them. It also exempts AFS licensees from the requirement to give a Financial Services Guide (FSG) and a general advice warning in relation to general advice in an advertisement about an offer or intended offer of their securities if the advertisement includes a like statement.

ASIC Instrument 2015/540 exempts an AFS licensee and its authorised representative from the requirement to give a general advice warning for oral general advice if, at the time of providing the advice, the advice provider verbally warns the client that the advice is general advice and may not be appropriate for the client. ASIC Instrument 2015/540 also makes minor modifications to section 949A(4).

ASIC Instrument 2015/541 exempts an AFS licensee and their authorised representatives acting in the capacity as an expert from the requirement to give an FSG when they provide general advice in an expert's report, and this is included in a disclosure document prepared by or on behalf of another person. ASIC Instrument 2015/541 also exempts arrangers from the requirement to give an FSG when they provide a financial service consisting of arranging for the issue of a financial product under an intermediary authorisation and modifies section 941C(5A)(a) to make clear that AFS licensees and authorised representatives may make available website disclosure information for dealing in a financial product for the purpose of implementing financial product advice they provide to a client.