Jones sets the trustee/adviser record straight
Ross Jones
Australian Prudential Regulation Authority (APRA) deputy chairman Ross Jones has shed some light on APRA’s perceived non recognition of the role of the financial adviser as revealed in an inquiry into superannuation.
Speaking at an Investment and Financial Services Association luncheon, Jones said the Parliamentary Joint Committee on Corporations and Financial Services inquiry into superannuation received a large number of submissions from advisers concerning APRA’s investment management circular, which was revised last March after industry and government consultation.
“The issue raised in some submissions seems to be that trustees can be put in a difficult position where they need to comply with the APRA circular regarding the need to base investment strategies on the fund circumstances while trying to respond to individual member choice,” Jones explained.
“While the SIS [Superannuation Industry Supervision] Act does not expressly prevent a trustee from considering financial planner advice, the trustee must consider all the circumstances of the entity when formulating and implementing an investment strategy — consequently, financial planner advice can only be one input into the process.
“APRA continues to have concerns regarding investment strategy issues, particularly if trustees were to abrogate responsibility in favour of members themselves or their financial planners.”
Jones said the committee in charge of the inquiry intends to report on its findings within the next few months.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
