ASIC accepts EU from SMSF advice provider
The financial services regulator has accepted an enforceable undertaking (EU) from CMH Financial Group and its sole director, David White, after it was found to give appropriate self-managed superannuation fund (SMSF) advice.
The Australian Securities and Investments Commission (ASIC) found CMH had advised clients that had balances below $200,000 to establish an SMSF. This along with CMH's fees, ASIC found to not be in the best interest of clients.
Clients were also advised to engage in high-risk gearing strategies ASIC viewed as inappropriate, given their circumstances and limited investment experience.
CMH was also found to have inadequate monitoring and supervision of representatives, particularly to ensure representatives were adequately trained and competent to provide SMSF advice.
CMH has agreed to appoint an independent expert to undertake a program of pre-vet and audit reviews to test the compliance of SMSF advice prepared. An independent expert will also review CMG's conflicts management arrangements and measures for monitoring and supervising representatives.
Under the EU, all CMH advisers providing SMSF advice will need to complete specialist SMSF training.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
