ASIC finds “common problems” with PYSP super fund communications

An ASIC review of communication sent by super funds to members about the Protecting Your Super reforms has found some “common problems”. The ‘Protecting Your Super Package’ (PYSP) reforms were aimed at protecting small superannuation accounts from erosion due to fees and insurance, and reducing the number of unintended small accounts. This was done by… Continue reading ASIC finds “common problems” with PYSP super fund communications

Regulators welcome larger role for ASIC in super sector

ASIC and APRA have both welcomed proposed changes which would increase ASIC’s role in regulating the superannuation sector. One of the recommendation of the Financial Services (Banking) Royal Commission was for ASIC and APRA to be co-regulators of superannuation. This would involve ASIC becoming the ‘conduct regulator’, while APRA remains the prudential and member-outcomes regulator.… Continue reading Regulators welcome larger role for ASIC in super sector

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51% of advice from super funds may not have complied with law, ASIC finds

A review of super fund advice files by ASIC has found that 51% don’t demonstrate compliance with the best interest duty and related obligations. ASIC has surveyed 25 superannuation funds about how they give advice to members. As part of this, the regulator found that 51% of financial advice files reviewed – which excluded general… Continue reading 51% of advice from super funds may not have complied with law, ASIC finds

MP asks ATO to confirm fact sheet figure of $13,900 to run an SMSF

Liberal MP Tim Wilson has written to the ATO Commissioner, asking for clarification on the $13,900 annual cost of an SMSF figure used by ASIC in its warning fact sheets to new SMSF trustees. ASIC announced that it would be trialing sending fact sheets about SMSFs to new trustees in November. Several of the facts… Continue reading MP asks ATO to confirm fact sheet figure of $13,900 to run an SMSF

ASIC starts court action over promotion of super fund

ASIC has started court action around the promotion of a super fund, including allegations of misleading claims about fees and insurance. ASIC announced that it has started court action, in the Federal Court of South Australia, against a super fund trustee, the promoter and others. “ASIC is concerned about potential harm to consumers if professional… Continue reading ASIC starts court action over promotion of super fund

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2 year financial services ban for opt-in MySuper transition

ASIC has banned an individual from the financial services industry for two years, in connection to a flawed MySuper transition. The regulator announced that it has banned Thanh Huu Tran, formerly an authorised representative of Aon Hewitt Financial Advice Limited, from providing financial services for two years. “This follows an ASIC surveillance which found that… Continue reading 2 year financial services ban for opt-in MySuper transition

“Junk” TPD insurance an industry-wide problem: ASIC

Some TPD insurance held though superannuation is “junk insurance”, says ASIC, with consumers paying full premiums but with pay outs tied to “very restrictive” definitions. A review by ASIC has found “significant industry-wide problems” with Total and Permanent Disability (TPD) insurance, including policies offered through super funds. ASIC says these problems extend to both the… Continue reading “Junk” TPD insurance an industry-wide problem: ASIC

Robo-advice tools voluntarily shut down after ASIC concerns

A financial advice company has voluntarily shut down two robo-advice tools, one of which dealt with SMSFs, after concerns were raised by ASIC. The regulator announced that Lime FS Pty Ltd had voluntarily shut down the robo-advice tools of two of its corporate authorised representatives, Lime Wealth and Plenty Wealth. Lime Wealth used the online… Continue reading Robo-advice tools voluntarily shut down after ASIC concerns

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New ASIC SMSF fact sheet “lacks balance”: SMSFA

ASIC has announced that it will be piloting sending a fact sheet to new SMSF trustees in November. The factsheet – called Self-Managed Super Funds: Are they for you? – has proved controversial in the SMSF sector, with the SMSF Association now questioning if it is balanced. The SMSF Association says the letter is a… Continue reading New ASIC SMSF fact sheet “lacks balance”: SMSFA

ASIC concerned consumers unaware of downsides of SMSFs

ASIC is concerned that consumers looking to start an SMSF are very aware of the advantages but not the downsides, and plans to send information to new trustees. ASIC warned people considering starting an SMSF to be aware of the potential downsides, and that for many Australians an SMSF is “inappropriate for their circumstances”. ASIC… Continue reading ASIC concerned consumers unaware of downsides of SMSFs