Below is an email from our Technical guru Lionel Rodrigues pointing out that the AIOFP is solely responsible for the lobbying on Client Advice Records [CAR] replacing SOA’s. In fact, member Steve Blizard, Lionel and others visited Minister Jones and Treasury in Canberra 18 months ago to discuss the policy.
A CAR only needs to be provided to the Client ‘on request’ which includes a smaller list of ‘mandatory items’. The draft wording also clearly states that the CAR does NOT need to be paper, but in a form that suits the client….ie video, audio, email etc – a great outcome. You will be shown a Video SOA [CAR] at the conference.
The only downside is the CAR will not come into effect until 12 months after Royal Accent…..this seems rather odd, something that should be changed, we will speak with Shadow Howarth and the Minister about it. Also, we need to make sure that ASIC does not complicate the outcome with their own unnecessary guidelines, which they have a bad habit of doing.
We pushed for this outcome in our 10 COMMANDMENTS Document which was adopted by Shadow Howarth in his presentation at our Canberra conference last November. Minister Jones did not commit at the time but it is now obviously clear this is part of his strategy to agree leading into the election.
Like the EDUCATION PATHWAYS/10 YEAR rule bipartisan outcome in 2022 we achieved, it is best negotiated leading into an election.
Our next strategy is to get a CSLR agreed outcome before the election and that is where we need your clients sending a message to both sides of politics. It will play a big role in forcing an outcome, so please get it done. YOU ARE NOT telling them who to vote for, they are letting both sides of politics know that the CSLR may influence their voting habits….
Will keep you updated.
From: Lionel Rodrigues
Sent: Friday, March 21, 2025 11:07 PM
To: Peter Johnston; Steve Blizard
Cc: Ray Bailey
Subject: Client Advice Record (CAR).
Gentlemen,
DBFO Tranche 2 has given us the CAR.
This is precisely what the AIOFP (and Steve and me) have been putting to Minister Joines for the past 2 years. This is an AIOFP initiative and an AIOFP victory. No one else has pushed for this.
Treasury has made it more difficult in the draft legislation than it has to be but it is a step in the right direction. It is proposed to repeal the definition of a SOA. A CAR will have almost the same definition with fewer obligations.
I think lawyers and Licensees will tread carefully initially. My main concern is how ASIC will interpret the CAR and what their guidance will provide.
Regards,
Lionel.
Regards.
Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621
www.aiofp.net.au | Download my business card
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