ASIC has registered ASIC Corporations (Amendment) Instrument 2020/635 to provide that the exemption for financial counselling service providers from the requirement to hold an Australian financial services licence covering the provision of certain financial product advice, in ASIC Corporations (Financial Counselling Agencies) Instrument 2017/792, also applies where financial counselling services are provided to small businesses.
Small business is defined as a business with less than 100 employees.
The amendment recognises that in response to the challenges caused by the bushfires, the Government provided funding to Financial Counselling Australia Ltd to provide financial counselling to small businesses.
The exemption is available where the advice relates to deposit, non-cash payments, insurance, retirement savings account product, or superannuation products (or where the advice is to dispose of a security, an interest in a managed investment scheme or a government-issued debenture, stock or bond).
ASIC Corporations (Financial Counselling Agencies) Instrument 2017/792 provides relief to financial counselling agencies that provide financial counselling predominantly for the purpose of assisting individuals who are in financial difficulty to resolve their problems.
The amendment avoids doubt as to whether that instrument covers financial counselling agencies who provide financial counselling to small businesses.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
