ASIC Commissioner Greg Tanzer on Fri 30.8.2013, provided a regulatory update on ASIC’s work in relation to self-managed superannuation funds (SMSFs) at the Tax Institute’s National Superannuation Conference. Key points include:
- SMSF advice and additional disclosure requirements – Mr Tanzer said that as part of the next stage of the SMSF taskforce, ASIC will release a consultation paper that: (i) proposes implementing specific disclosure requirements to improve the quality of advice given to investors who are considering setting up or switching to an SMSF; (ii) attaches a research report (by Rice Warner Actuaries) which sets out the costs of operating SMSFs; and (iii) proposes to give guidance to improve the quality of advice to establish an SMSF including the consideration of cost issues.
- Compliance focus areas– Mr Tanzer said ASIC wants “to continue to work with gatekeepers in the coming year to ensure that the SMSF sector remains healthy and safe for investors”. He said particular focus areas for ASIC this year includes unlicensed SMSF advice and misleading SMSF advertising – points include:
- Mr Tanzer said that ASIC believed that there is some market confusion about how the AFS licencing regime applies to operators recommending that retail investors purchase a property through an SMSF, with some operators mistakenly thinking they do not require an AFS licence. He said that where ASIC sees examples of unlicenced SMSF advice, it will take regulatory action.
- ASIC has seen problems with misleading or deceptive statements about SMSF fees, returns and risks. Mr Tanzer said ASIC encourages all SMSF advertisers to carefully review the content of their advertisements against the guidance contained in Regulatory Guide 234 Advertising financial products and advice services (including credit) good practice guidance (RG 234).
[LTN 168, 30/8/13]