It has happened to financial planning practices and now it is going to happen to superannuation funds – Australian Securities and Investments Commission (ASIC) shadow shopping exercises.
ASIC Commissioner, John Price has told the Risk Management Association annual conference that ASIC will be embarking on shadow shopping exercises with respect to superannuation funds as part of a general strengthening of its supervision and enforcement in the sector.
He said the regulator had already strengthened its superannuation-focused team and would be increasing its focus on the consumer perspective of superannuation through the incorporation of more consumer testing.
“Our strengthened superannuation team will also move towards a more intensive engagement model, where superannuation stakeholders will deal with specific ASIC staff on a more consistent and regular basis,” he said. “By building on our existing work in this way, we plan to heighten the intensity of our regulatory scrutiny in superannuation.”
Price also signalled that where other financial institutions were concerned, ASIC would be heavily focused on driving improvements in breach reporting and that its so-called embedding of staff within financial services businesses would have an initial focus on breach reporting.
