SMSF planning group to rectify ASIC advice concerns
A Melbourne based financial advice group has been required to boost its compliance and retrain its advisers after the Australian Securities and Investment Commission (ASIC) raised concerns about the appropriateness of advice provided to some clients.
ASIC said Interprac Financial Planning had agreed to undertake a number of measures to improve advice provided by clients after the regulator identified issues around the appropriateness of advice provided to clients on the establishment of a self-managed superannuation fund (SMSF).
ASIC stated its surveillance found that advice was not tailored to the needs of each client and comparisons of client's existing super with an SMSF were inadequate.
As a result of the surveillance Interprac stated it would appoint a compliance expert to oversee SMSF advice and write to clients who may have received poor advice informing them of dispute resolution methods available to them.
Interprac planners providing SMSF advice would undergo complete specialist SMSF training as well as training focusing on replacement product disclosures and best interests duty.
The group, which ASIC said had co-operated fully, is also required to report to the regulator on the implementation of the measures to confirm its concerns were addressed.
AUTHOR
Jason Spits
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