ASIC 'very supportive' of quality limited advice

ASIC/superannuation/Jason-Falinski/

11 February 2021
| By Mike |
image
image image
expand image

The Australian Securities and Investments Commission (ASIC) has defended its handling of intra-fund and limited advice delivered by superannuation funds in the face of questioning within a key Parliamentary Committee.

Asked to explain why ASIC had not taken action against superannuation fund limited personal advice given the compliance rates outlined in the regulator’s Report 639, ASIC declared “We do not consider limited advice to be a dangerous form of advice”.

NSW Liberal back-bencher, Jason Falinski had filed questions on notice to ASIC within the Parliamentary Joint Committee on Corporations and Financial Services in which he compared the level of action initiated by ASIC around advice inside superannuation when compared to the action it took around its Report 413 involving life insurance advice.

Falinski referred to limited personal advice as being a “very dangerous form of advice” and suggested it was doing consumer harm and asked what action ASIC was taking to shut it down.

He also suggested that because ASIC had taken pre-emptive action against real estate agents and questioned why ASIC had not taken similar action with respect to limited personal advice provided by superannuation funds.

Answering the questions, ASIC said it was “very supportive of the provision of good quality limited advice”.

“We do not consider limited advice to be a dangerous form of advice,” the regulator aid.

ASIC said that it also did not believe that the delivery of limited personal advice by superannuation funds was “analogous to the possible inadvertent provision of unlicensed financial advice by some real estate agents”.

The ASIC answer also dismissed an admonition in Falinski’s questioning that it give a commitment to exercising its regulatory duties “without favour and in an impartial way”.

“ASIC always undertakes its regulatory duties in a diligent and appropriate matter,” the regulator’s answer said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 month 1 week ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 months ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 months 1 week ago

ASIC has canceled the AFSL of Sydney-based asset consultant and research firm....

1 week 1 day ago

The Reserve Bank of Australia has announced its latest interest rate decision following this week's monetary policy meeting....

2 weeks 3 days ago

A former financial adviser who stole $4.4 million from his family and friends to feed gambling debts has been permanently banned by ASIC....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
moneymanagement logo