ASIC accepts EU from SMSF advice provider
The financial services regulator has accepted an enforceable undertaking (EU) from CMH Financial Group and its sole director, David White, after it was found to give appropriate self-managed superannuation fund (SMSF) advice.
The Australian Securities and Investments Commission (ASIC) found CMH had advised clients that had balances below $200,000 to establish an SMSF. This along with CMH's fees, ASIC found to not be in the best interest of clients.
Clients were also advised to engage in high-risk gearing strategies ASIC viewed as inappropriate, given their circumstances and limited investment experience.
CMH was also found to have inadequate monitoring and supervision of representatives, particularly to ensure representatives were adequately trained and competent to provide SMSF advice.
CMH has agreed to appoint an independent expert to undertake a program of pre-vet and audit reviews to test the compliance of SMSF advice prepared. An independent expert will also review CMG's conflicts management arrangements and measures for monitoring and supervising representatives.
Under the EU, all CMH advisers providing SMSF advice will need to complete specialist SMSF training.
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