ASIC imposes additional conditions on SMSF Advisers Network
The Australian Securities and Investment Commission (ASIC) has imposed additional licence conditions on SMSF Adviser Network (SAN) due to its significant increase in adviser numbers in a relatively short period of time.
The regulator launched a surveillance under which it reviewed a number of SAN’s client files and identified that some of the company’s advisers “failed to demonstrate compliance with the best interest duty and related obligations”.
Also, ASIC found that client files often lacked evidence to support the advisers’ recommendations that clients established a self-managed super fund (SMSF).
As a result, the regulator believed that the firm had inadequate supervision process in place to ensure that advice provided by its representatives was in the best interests of clients.
Under the additional licence conditions, SAN would be required to “engage an independent expert to review and test the compliance of advice provided by SAN’s advisers.”
“When providing SMSF advice, financial advisers are required to adequately demonstrate why an SMSF is appropriate for the client and why it is in the client’s best interest,” ASIC said in a press release.
“ASIC expects financial advisers to use their skills, expertise and judgement in determining whether an SMSF is appropriate and not rely solely on client direction.”
The licence conditions were imposed by consent as a result of SAN’s engagement in addressing the concerns identified during the ASIC surveillance.
AUTHOR
Oksana Patron
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
