Did advisers use super choice to protect trails?
The Australian Securities and Investments Commission has confirmed that it has investigated allegations that members of superannuation fund may have been misled about transitioning to MySuper products to protect adviser trailing commissions.
Answering questions on notice from the Parliamentary Joint Committee on Corporations and Financial Services, ASIC confirmed it had received allegations that superannuation fund members holding funds in default investment options had been misled into making an investment choice so that they would opt out of transitioning into MySuper.
“It is alleged that these communications failed to disclose that by making this investment choice the member would continue to pay trailing commissions to an adviser, as well as higher fees and insurance premiums relative to the MySuper option,” the ASIC answer said.
The regulator told the committee it was in the process of asking 18 [superannuation fund] trustees questions under notice relevant to the issue.
“We have asked questions including how many members moved to choice products, rather than into new MySuper options, as well as what disclosure and advice members received about the transition,” the ASIC answer said.
“We have asked for copies of disclosure documents such as accrued default amount notices as well,” it said.
Recommended for you
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
Sharing his reasoning in joining the FSC board, WT Financial managing director, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.