ASIC confirms super advice scrutiny
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.