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ISCOVER
Staff Reporter
In its first major investigation into the self-managed super fund (SMSF) sector, ASIC has found some advisers are providing their investor clients with “poor advice”.
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As part of its latest report SMSFs: Improving the quality of advice given to investors, ASIC found that while a majority of advice provided to investors is “adequate”, there are pockets of “poor advice”.
As part of its investigation, ASIC found some advice was not properly tailored to the needs of the investor.
In addition, the corporate watchdog found replacement product disclosure was inadequate or absent, insurance recommendations were absent or inadequate and suitable alternatives to an SMSF were often not considered.
ASIC commissioner Peter Kell said the watchdog has ramped up its attention to a sector that is of growing importance to an increasing number of Australian investors.
“We want to help ensure that we have a healthy SMSF sector,” he said. “The decision to establish an SMSF is one of the most significant steps an investor can take in relation to their retirement savings. It involves taking greater personal responsibility for retirement investments. ASIC therefore wants to make sure those investors can be confident they can obtain good quality advice through gatekeepers such as accountants and financial planners.
“At the very least, investors need to understand the time, resources, compliance obligations and risks associated with do-it-yourself superannuation, before moving their superannuation savings out of an APRA-regulated environment.
“We do not want to see SMSFs become the vehicle of choice for property spruikers. Where we see examples of unlicensed SMSF advice, or misleading marketing, we will be taking regulatory action.”
