ASIC set to contact clients in new super shadow shopping mission
Following findings from ASIC’s review into SMSF advice and the royal commission, ASIC has revealed plans to bolster its surveillance of the super sector through further shadow shops and consumer testing.
Speaking at the FSC Summit, ASIC chair James Shipton said the royal commission has highlighted some “unacceptably poor member outcomes” in super which has contributed to a “trust deficient in superannuation”.
Mr Shipton said this includes the poor financial advice about superannuation issues and options in relation to setting up an SMSF or switching superannuation products.
He also referenced the two reports released by ASIC on SMSFs and financial advice this year which highlighted that 91 per cent of files reviewed did not comply with the applicable financial adviser obligations.
ASIC will soon be releasing further reports into superannuation, he said, focusing on insurance in super.
“We will shortly be releasing our Insurance in Super report, and we have further work on employers and super as well as in relation to total and permanent and disablement Insurance. We are also planning a project looking at personal advice provided by superannuation funds,” he said.
ASIC is looking to enhance its supervisory approach for superannuation, he said, and has dedicated greater resources to this area.
“Our planned enhanced supervisory approach will use a range of supervisory techniques, including more frequent on-site visits, build on our already significant public actions in the superannuation sector, including more enforcement outcomes and better leveraging the data currently available to ASIC, and APRA,” Said Mr Shipton.
“We will also make use of new data sources, including internal dispute resolution data that must be reported to ASIC, as well as data on life insurance claims coming from joint ASIC and APRA work.”
He also stated that ASIC will increase its focus on the consumer perspective through the incorporation of more consumer testing and shadow shopping.
“Our strengthened superannuation team will also move towards a more intensive engagement model, where superannuation stakeholders will deal with specific ASIC staff on a more consistent and regular basis,” he said.
“Accordingly, you can expect our approach to continue to build on and enhance our close working relationship with these agencies.”
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
