The super switching 'arms race' around technology: Mulino
The advice industry is in an “arms race” according to minister for financial services, Daniel Mulino, around the use of technology in superannuation switching scams such as Shield Master Fund.
Speaking at the Financial Advice Association Australia (FAAA) annual congress in Perth, Mulino discussed the cold-calling and social media posts which led to consumers being targeted to switch their superannuation.
Mulino, who took over the position from Stephen Jones, said the advice industry needs to compete with the scammers by using technology to their own advantage.
“We know that we are in an arms race and we see it with scams and a whole range of areas where perpetrators of actions that we don’t want to see are constantly trying to use technology to their advantage.
“So we need to constantly figure out ways that we can use technology to our advantage and there are ways we can do that which are not overly cumbersome or complex.
“For example, there are ways we can share information better between the sector and the regulators. There are ways we can use technology which are low cost and straightforward and these are things we should be exploring as first steps.”
Continuing on the theme of how the government and regulators will work to stop bad actors, he said he is eager to ensure those honest advisers are not penalised in the crossfire of additional regulation.
“We want regulation that catches those actors who are doing the wrong thing and sometimes doing it intentionally. But I will certainly be trying to look for solutions that have the minimal impact we can on the vast majority of people who are doing the right thing and providing those critical services.”
AUTHOR
Laura Dew
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