The Australian Securities and Investments Commission (ASIC) has confirmed that advice within superannuation will come under scrutiny in 2018-19.
The regulator has confirmed its intentions in its Corporate Plan, announcing a new project specifically aimed at examining the quality of financial advice in superannuation.
It said the focus would be on improving conflicts of interest management for advice provided to existing retail and industry fund members.
“This covers advice channels such as advisers employed by or authorised by the fund (or a related entity) and advisers with a referral arrangement with the fund,” the ASIC document said.
It said the regulator would be reviewing samples of advice provided, including relating to fund consolidation and intra-fund advice, such as where the cost is borne by all fund members.
Confirmation of the ASIC action follows on from an earlier announcement that it would be subjecting superannuation funds to a shadow shopping exercise.
Comments
I have seen quite a lot of discussion around advice related to group schemes yet,
I cannot understand that the importance of automatic acceptance levels has not been considered or brought to the attention of the RC. This major benefit for full time employees to obtain risk benefits without evidence of good health, even for mental illnesses, has not even been considered. In fact, automatic acceptance levels (free limits) have been ignored ever since those who installed “Choice” never understood the long term implications of such a system.
I believe that these aspects have been missed by the “authorities” due to inexperience and lack of real field experience and, that nothing has been mentioned about the loss of or reductions of the limits as the group insurers have been forced to reduce the limits as membership and age averages have been altered by these unthought of actions. Those effected loadable or uninsurable individuals will never be able to obtain the cover that they so direly need now or will need in the future.
I think that it is about time that the regulators seek assistance from experienced advisers, before they are sent into oblivion.
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