ASIC accepts EU after SMSF advice concerns

ASIC, Enforceable Undertaking, EU, SMSF advice, AFS licenceASIC has accepted an Enforceable Undertaking following concerns about the appropriateness of financial advice involving SMSFs.

“ASIC has accepted an enforceable undertaking (EU) from Ascentiv Group Pty Ltd (Ascentiv), based in Mascot, New South Wales, and its sole director, Mr Chris Pappas,” said an ASIC statement.

Surveillance by ASIC identified “concerns about the appropriateness of Ascentiv’s advice to clients to establish or use a self-managed superannuation fund (SMSF)”.

Some of ASIC’s concerns were that Ascentiv was failing to ensure its representatives provided SMSF advice that was appropriate and in the clients best interest, managing conflicts of interest and failing to ensure its representatives were “adequately trained and competent to provide SMSF advice”. Read more...

ATOs powers to address SMSF compliance breaches

The ATO has a number of options available to deal with SMSF compliance breaches:

  • Education Directions
  • Rectification Directions
  • Administrative Penalties
  • Enforceable Undertakings
  • Allowing an SMSF to wind-up
  • Disqualifying Trustees
  • Freezing SMSF assets
  • Issuing a Notice of Non-Compliance
  • Civil and Criminal Penalties