ASIC cracks downs on distribution of super products
ASIC has provided new information on what employers can and cannot do when providing guidance to employees about superannuation choices.
The updated information and changes reflect the revised hawking prohibition and the design and distribution obligations (DDOs) which came into effect last week.
“It is important that employers do not take steps that are inconsistent with laws designed to promote good choices by consumers about their superannuation fund,” ASIC commissioner Danielle Press said.
“Superannuation trustees should not encourage employers to act in a manner that is contrary to the law to promote their funds. Recent law reform has affected a variety of obligations concerning marketing and distribution of superannuation products, including via employers.
“Trustees should be checking if the way they seek to attract and retain employees as members is appropriate, in light of changes to the law and other relevant obligations.”
ASIC confirmed that following the new information release, a review on how trustees use employers to distribute superannuation products will be conducted this financial year.
It also warned that regulatory action will be considered if misconduct or consumer harm is identified.
The news comes only a day after ASIC announced a further extension to COVID relief measures for the advice industry.
Originally announcing the measure in April 2020, the corporate regulator confirmed on Thursday that it has extended the “record of measure” which allows financial advisers to provide a record of advice, rather than a statement of advice, to existing clients.
Tony Zhang
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.
