The superannuation sector’s handling of retirement outcomes will be an area of focus for ASIC which has also committed to review SMSF establishment advice.

The Australian Securities and Investments Commission (ASIC) will make the delivery of retirement-focused advice and services by the superannuation sector a key part of its work during the current financial year and has also committed to a review of SMSF establishment advice.

The corporate regulator outlined its intentions in its “Corporate Plan 2024-25”, released today, which identified retirement outcomes and member services from superannuation funds as one of five strategic priorities.

As part of that priority, ASIC stated it would focus on improved services for superannuation fund members, driving progress towards improving the retirement outcomes and service experience of members through the implementation of the Retirement Income Covenant (RIC), and compliance by super trustees, and providers of managed investments and financial advice.

To achieve these outcomes, the plan outlined key activities that would be undertaken, including action against misconduct that resulted in the inappropriate erosion of superannuation and action against member services failures in the super sector.

“We will take targeted enforcement action against cold-calling superannuation switching models that result in the inappropriate erosion of superannuation,” it said.

“We will take action to target misconduct in the superannuation sector, with a particular focus on member experience, including superannuation trustees’ provision of services to members, and harms arising from complaints handling and claims handling,” it added, noting the timeframe for these activities was ongoing.

Action would also be taken against superannuation trustees which do not correctly implement changes required under the RIC, with the regulator stating its ongoing monitoring of these changes would drive compliance with regulatory obligations and improve retirement outcomes for super members.

ASIC would also continue its multi-year project reviewing industry compliance with law related to contact centres and trustee administration practices and will complete its surveillance on death-benefit claims handling, taking enforcement or other regulatory action where appropriate.

In regards to the SMSF sector, it reiterated plans to review SMSF establishment advice, a move it flagged earlier this year.

“We will conduct surveillance of personal advice provided to retail clients about the establishment of SMSFs. The surveillance will assess the quality of advice by financial advisers and consider the role of AFS (Australian financial services) licensees,” it said.

“Where appropriate, we will take enforcement or other regulatory action against misconduct.”

This review would be the second into SMSF advice following similar actions in 2018 that led to the release of ASIC reports 575 and 576, which examined the quality of advice and member experience of SMSF members and the advice they received when setting up a fund.

August 22, 2024
Jason Spits
smsmagazine.com.au

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David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

Qualifications:

Bachelor of Economics with Accounting Major (BEc (Acc))
Master of Business Administration (MBA)
Certified Practising Accountant (CPA Australia)
Graduate Diploma in Applied Finance and Investment (FFin)

Memberships:

Member of the professional association of Certified Practising Accountants (CPA Australia)

Contact:

David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

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