Advice by super funds 'generally appropriate'

ASIC/advice/superannuation/danielle-press/australian-securities-and-investments-commission/financial-advice/super-funds/superannuation-funds/retail-funds/industry-funds/financial-security/advice-fees/APRA/australian-prudential-regulation-authority/

3 December 2019
| By Jassmyn |
image
image image
expand image

The corporate watchdog has found that financial advice provided by superannuation funds has overall been “generally appropriate”, with quality of advice being similar across retail and industry funds.

The Australian Securities and Investments Commission’s (ASIC’s) ‘Report 639 Financial advice by superannuation funds’ looked at 25 super funds and how they helped members obtain financial advice.

ASIC Commissioner, Danielle Press, said: “We recognise that inappropriate superannuation advice can have a significant detrimental impact on members’ future financial security. Where we did see some risk of detriment, we will be following up with the advice provider and requiring that they review and remediate the affected member.

“More broadly, proper oversight of advice fee deductions from superannuation accounts for all advice, not just advice provided by superannuation trustees, is an area of ongoing focus for ASIC working with APRA.”

Press noted that the quality of advice was found to be similar across retail and industry funds.

“Due to the different sample sizes we used in our work however, it is not possible to properly compare the overall quality of advice based on all four fund types, and our findings are presented on an aggregate basis,” she said.

“We will continue to monitor developments in advice services offered by funds through our regular engagement with trustees and take action as required.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 6 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 2 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days 22 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5