Licensee in hot water over super switching advice
ASIC has accepted an enforceable undertaking from an AFS licensee after ASIC surveillance found its advisers had provided inappropriate advice on switching superannuation funds.
The corporate regulator announced in a public statement that it has accepted an enforceable undertaking from Australian financial services licensee AIW Dealer Services to conduct an independent review of its advice processes.
Surveillance by ASIC found that Otium advisers had used a "one size fits all" advice model, advised clients to switch superannuation funds when it was inappropriate to do so and failed to demonstrate the ability, professional skills and knowledge required to competently provide financial product advice.
ASIC said it was concerned that AIW may have “failed to take reasonable steps to ensure that its representatives complied with financial services laws, and that it did not have available adequate resources to provide financial services and to carry out supervisory arrangements”.
“Under the EU, AIW acknowledges that these concerns are reasonable, and will engage an independent expert to assess, make recommendations and report on the effectiveness of its policies and procedures,” said ASIC.
“This will also include a review of a sample of Otium client files to test AIW's file review methodology and compliance with the Corporations Act.”
ASIC acknowledged the co-operation of AIW in connection with the surveillance.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.