The Australian Securities and Investments Commission (ASIC) report into financial advice by superannuation funds highlights the need for continuous improvement in advice offerings in superannuation, according to the Australian Institute of Superannuation Trustees (AIST).
Of the pieces of advice provided by the 25 superannuation funds surveyed by ASIC, 50% were found to be fully compliant, 36% were not fully compliant and 15% not compliant.
Eva Scheerlinck, AIST chief executive, said the report found members were typically better off getting advice from their super fund than from the big four banks or AMP, which had only a quarter of advice pieces fully compliant according to a similar survey by ASIC in 2018.
However, while ASIC’s report found personal advice provided by super funds was ‘generally appropriate’ there was still room for improvement.
“Clearly, there is still room for super funds to improve both the quality of advice they are providing as well as how this advice is delivered to their members,” Scheerlinck said.
“Super funds play a vital role in providing cost-effective financial advice to members and its incumbent on them to do this in a way that is fully compliant with the regulatory requirements and, most importantly, in members’ best interests.
“Given that this report also suggests many super funds are expanding their advice offerings and moving towards more digital advice, compliance must continue to be prioritised.”