Advice by super funds 'generally appropriate'


The corporate watchdog has found that financial advice provided by superannuation funds has overall been “generally appropriate”, with quality of advice being similar across retail and industry funds.
The Australian Securities and Investments Commission’s (ASIC’s) ‘Report 639 Financial advice by superannuation funds’ looked at 25 super funds and how they helped members obtain financial advice.
ASIC Commissioner, Danielle Press, said: “We recognise that inappropriate superannuation advice can have a significant detrimental impact on members’ future financial security. Where we did see some risk of detriment, we will be following up with the advice provider and requiring that they review and remediate the affected member.
“More broadly, proper oversight of advice fee deductions from superannuation accounts for all advice, not just advice provided by superannuation trustees, is an area of ongoing focus for ASIC working with APRA.”
Press noted that the quality of advice was found to be similar across retail and industry funds.
“Due to the different sample sizes we used in our work however, it is not possible to properly compare the overall quality of advice based on all four fund types, and our findings are presented on an aggregate basis,” she said.
“We will continue to monitor developments in advice services offered by funds through our regular engagement with trustees and take action as required.”
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.