With the publication of new disclosure regulations, each transitionally licensed Financial Advice Provider must now develop a process for implementing these to take effect from 15 March 2020.
This change means engaging with systems people, reviewing websites, reviewing statements of services, and reviewing statements of advice. Outlined below is a more detailed process for designing and implementing a new disclosure procedure. It is significant.
The core work involves:
- Identification, review and development of the disclosure content required:
- To be publicly available on the Financial Advice Provider website, and
- To be delivered to consumers
- When the nature and scope of advice is known
- When advice is given
- When a complaint is received
- Determining how the required disclosure is to be given to a consumer (verbally or in writing, while noting that a consumer can always request written disclosure)
- Development of an implementation plan to ensure introduction of the disclosure changes as and when required (15 March 2020)
- Development of a compliance and compliance assurance plan to provide comfort to the Financial Adviser Provider Governance Structure (e.g. Board) that the legal disclosure requirements are being met, or, in the event of a failure, any such instances of failure are identified and remedied.
The regulations also contain further information on other matters that should be considered, such as:
- The requirement to consider materiality when considering what should be disclosed
- When information must be given about a person as well as about the Financial Advice Provider
- When reference to publicly available information will be sufficient to fulfill the disclosure requirement, rather than having to specifically provide a disclosure direct
- When reliance can be given to past disclosures already completed until or unless a material change occurs
If you would like to discuss how Chatswood Consulting Ltd may be able to support you during this change, please call.