ASIC denies prescriptive disclosure for SMSFs
The Australian Securities and Investments Commission (ASIC) has declared it is not intending to introduce prescriptive disclosure requirements around product advice impacting self-managed superannuation funds (SMSFs).
The regulator's position was made clear by ASIC commissioner John Price to an Institute of Public Accountants (IPA) conference where he outlined the work and approach of ASIC's so-called SMSF Taskforce.
He noted recent roundtable exercises held by ASIC and said one of the concerns raised by industry participants was whether the regulator was planning to introduce prescriptive disclosure requirements for advice about other financial products.
"As we said at the roundtable discussions, and I will say it again today, this is not on the cards," Price said.
However Price signaled that it was ASIC's intention to ensure people were better informed about the implications of establishing an SMSF before it occurred.
"Some stakeholders have noted that the [disclosure] proposals cover issues that are also contained in the trustee declaration that SMSF trustees give to the Australian Taxation Office (ATO)," he said. "This isn't coincidental — ASIC looked closely at the trustee declaration in developing the proposals.
"A key difference is that trustees get the declaration after they have already set up their SMSF. Our proposals are designed to ensure that they get this information before then, so people can use the information to decide whether a SMSF is right for them," Price said.
He noted that ASIC had allowed an eight-week consultation period around the proposed changes, and said that early next year the regulator wanted to finalise a decision on any next steps.
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