ASIC looks at reasonableness of super advice fees

ASIC the Australian Securities and Investments Commission financial advice superannuation funds super funds

18 September 2019
| By Mike |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has detailed the manner in which it is looking at financial advice provided within superannuation funds including whether the fees charged are reasonable.

The regulator has signalled that it is looking at the fees deducted from superannuation fund member balances and whether they are actually fair.

Under questioning by the Parliamentary Joint Committee on Corporations and Financial Services, the regulator has made clear that it is looking to impose a consistent approach to advice fees across the superannuation industry.

ASIC commissioner, Danielle Press told the committee that the regulator was looking at the fees issue alongside insurance inside superannuation, including claims handling.

“We're looking at advice in superannuation, in particular around where fees are deducted from superannuation funds and whether or not they are reasonable, and whether or not the services are actually being delivered for those fees,” she said.

“We're also looking at the disclosure of costs and fees, and trying to get some form of consistency across the industry around what is actually taking out of these funds appropriately or inappropriately,” Press said.

Press said that ASIC did not mandate fee levels and she did not believe it should, but that the regulator wanted to make sure that fees that were being withdrawn from funds were reasonable and fair.

“…but we are not setting a limit on the fee level as such; it's more about ensuring that the deduction of the fee is a reasonable fee to deduct,” she said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

5 days 16 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week 2 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

4 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks 2 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

1 week 1 day ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 week ago