In a speech at the Institute of Public Accountants (IPA) 2013 National Congress on Fri 8.11.2013, ASIC Commissioner John Price provided an update on the consultation process for Consultation Paper 216 Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs (CP 216) released in September 2013 (see 2013 LTN 179 [4]).
The Consultation Paper proposed specific disclosure requirements for advisers who give personal advice to clients on establishing or switching to an SMSF. It also looked at appropriate levels of resources investors should have before setting up an SMSF, based on a Rice Warner report on the costs of operating an SMSF. Mr Price reiterated that ASIC was not proposing a mandated minimum balance, but rather, was looking to provide clearer guidance on the issue based on research and on industry and investor views.
Mr Price said ASIC had recently held 2 separate roundtables to discuss the Paper’s proposals – one for industry stakeholders and the other for investor representatives. He said overall, the stakeholders supported the disclosure proposals in CP 216. However, Mr Price noted one concern raised by industry was whether the proposals were a signal that ASIC was planning to introduce prescriptive disclosure requirements for advice about other financial products. In response, Mr Price said this was “not on the cards”.
[LTN 217, 8/11/13]