In the plan, released on Wednesday, the corporate regulator unveiled a range of initiatives around improving outcomes for consumers in advice and investment, including the development of a graphic of “SMSF red flags” for consumers considering setting up a self-managed fund.
ASIC said the initiative would help consumers “make informed decisions” about setting up an SMSF, as it noted that SMSFs made up an increasingly significant proportion of the $2.78 trillion in total Australian super assets.
In addition, the corporate regulator proposed to examine unmet needs in financial advice more generally, and potential solutions to reduce the gap between advice supply and demand.
ASIC stated it would also be assisting the government to review the effectiveness of regulatory changes introduced to the advice industry over the last few years, through a large-scale review of advice files.
Further, ASIC would be publishing a report into the use of the term “general advice” within the industry and conducting consumer testing of more appropriate labels for the term.
More broadly, the regulator said it would continue to implement its “why not litigate?” philosophy, focusing on increased court-based outcomes for regulatory breaches which would be overseen by a new Office for Enforcement.
ASIC said the office would be “responsible for enhancing the investigation of contraventions and the enforcement of laws that ASIC administers”.
