ASIC to target retirement advice in shadow shop

Retirement financial advice will soon be under scrutiny by the Australian Securities and Investments Commission (ASIC) with the announcement that it will resume its shadow shopping survey this year.

ASIC Commissioner Greg Medcraft (pictured) said the watchdog chose to focus on retirement advice due to the growing number of people getting ready to retire – particularly baby boomers.

“Around 20 per cent of the current super pool is in retirement products, such as de-accumulation products, and this is likely to double over the next decade,” he said.

“It’s critical people make good decisions about their retirement and get quality retirement advice to make the most of their retirement savings.”

He said the survey would not be an exercise in “naming and shaming financial advisers”, but rather it would try to define what good quality advice was and give the industry feedback and guidance.

According to ASIC, the shadow shopping research also aims to improve the watchdog’s understanding of how consumers view the retirement advice process, identify areas of misconduct for further action, encourage continued professionalisation and encourage people to seek advice when planning their retirement.

The shadow shopping will be conducted in consultation with an expert reference panel which will include representatives from both industry and consumer groups. The panel is currently being assembled by ASIC.