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ASIC imposes licence conditions on SMSF adviser

ASIC imposes licence conditions on SMSF adviser

Reporter
19 September 2013

The corporate regulator has imposed an extra condition on a NSW-based AFSL holder after surveillance prompted concerns about the advice provided to SMSF trustees.

The Australian Securities and Investments Commission (ASIC) has placed an additional licence condition on Moneywise Securities Ltd in response to concerns about advice provided by the company on margin lending and the establishment of an SMSF.

The ASIC investigation found that concerns relating to “advice that did not adequately consider the specific needs of the client but recommended the client establish a margin loan or SMSF; compliance with the disclosure requirements when the advice provided to clients included the replacement of one financial product with another” and management of conflicts of interest.

“When providing advice on more complex financial products such as margin loans or SMSFs, the advice provider must be particularly diligent in ensuring the financial product is suitable to the specific needs of the client,” said ASIC senior executive leader Louise Macaulay.

The company will now undergo an external review of its SMSF advice practice.

The move follows the release of proposed guidelines to further regulate the SMSF advice sector by the corporate regulator this week. 

ASIC imposes licence conditions on SMSF adviser
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