Have unions been giving unlicensed advice?
A senior Liberal Party Senator has queried whether trade unions are providing unlicensed advice when they urge employers to nominate particular superannuation funds as default funds.
Tasmanian Liberal Senator, David Bushby has used Senate estimates to directly ask the Australian Securities and Investments Commission (ASIC) whether trade unions operating in such a way might be breaching regulatory requirements.
“…if a trade union is providing advice to an employer about what might be appropriate default superannuation funds, I would have thought it might fall foul of that requirement,” he said.
Senator Bushby said he was encouraging ASIC to look at the issue in the context of the manner in which the regulator handled financial advisers.
“… I would encourage you to look at this and put it in the framework of a question and ask you whether you will look at this or whether you will consider it,” he said.
“The advice of that nature, which is provided by a trade union, does not seem to me to differ too much from financial advice that is given by a financial adviser about the same decision,” Senator Bushby said. “I ask whether you will acknowledge that that is a potential question that you could look at.”
ASIC senior executive, Ged Fitzpatrick acknowledged Bushby’s question and said he understood what the Senator was wanting ASIC to look at.
Recommended for you
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
There have only been a “handful” of opportunities in the last 20 years when infrastructure has looked as cheap relative to equities as it does now, according to Lazard, making it a viable option to provide portfolio security amid market volatility.
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
