No exceptions from shadow shop: ASIC
Intra-fund advice will not be excluded from the Australian Securities and Investments Commission’s (ASIC’s) shadow shopping exercise targeting retirement advice, which the regulator has announced will be revived again this year.
In response to questions about whether the shadow shopping exercise would apply to all retirement advice including intra-fund, ASIC stated that there would be no exceptions.
“Essentially anyone giving retirement advice could be shadow shopped,” said an ASIC spokesperson.
The Association of Financial Advisers’ chief executive Richard Klipin (pictured) said he welcomed shadow shopping as an opportunity to get a fix on the progress the profession had made as a whole.
“The expectation of the advisory profession is that if ASIC is shadow shopping advisers in the area of retirement advice, then that’s exactly what they’ll do,” he said.
“It will be all advisers providing advice in the field rather than separating out certain types of advisers.”
Klipin also said he was pleased with ASIC Commissioner Greg Medcraft’s comments that it would not be an exercise in naming and shaming, and that it would involve an expert reference panel as part of the process.
“We’re keen that the shadow shop becomes the mirror to the industry and that the good work of advisers is recognised rather than some of the negative connotations and insights of previous shadow shops,” Klipin said.
“I think the key way for shadow shopper 2011 to benefit the profession is that it’s done with the right spirit and the right intent,” he added.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
