How ASIC told super funds to handle adviser commissions
The degree to which the Australian Securities and Investments Commission (ASIC) has used its powers to eliminate the payment of commissions to financial advisers by superannuation funds has been revealed by its latest review of regulatory relief applications.
The ASIC document has revealed that while the regulator was prepared to grant disclosure relief with respect to transfers between superannuation funds with the same trustee, it used the process to oblige the superannuation fund to act on commissions.
The regulator said it had provided an extension of relief to the superannuation on the basis that while the transfer involved a change of fund for the member, the member would still subsequently hold a superannuation that contained substantially the same rights and features.
However, one of the conditions ASIC saw fit to impose conditions on the superannuation fund related to commissions and the ability of adviser clients to end those arrangements without having to first contact the adviser.
“We also imposed further conditions to relief under the extension so that the trustee must: (a) provide members whose accounts are charged commissions with a notice to highlight the trustee’s arrangements under which members may give a direction to the trustee that it immediately cease charging commissions without any need for the member to contact the person to whom the commissions are being paid; and (b) further highlight those arrangements prominently on its website.”
Recommended for you
As the year comes to an end, Money Management takes a look at the biggest announcements that shocked the financial advice industry in 2024.
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
