Super funds could lose MySuper for conflicted remuneration
Super funds that charge conflicted remuneration on a MySuper product could see their default license cancelled by the Australian Prudential Regulation Authority (APRA).
The Australian Securities and Investment Commission (ASIC) has released guidance on giving and collectively charging for intra-fund advice, that sets out the penalty for non-compliance.
ASIC reminded funds with authorisation to offer a MySuper product that they could not deduct any amount from MySuper products that related to making a commission payment to a financial adviser, or member fees that related to conflicted remuneration.
The information also set out trustees’ requirements in relation to intrafund advice and the Future of Financial Advice (FOFA).
It said super funds’ personal advice offer, including intrafund advice, needed to comply with Pt 7.7a of the Corporations Act (excluding the opt-in duty) including best interests duty; the obligation for advice to be appropriate; and the conflicted remuneration provisions.
ASIC also released guidance on disclosure requirements for super fund trustees.
It said although trustees were not required to give the same information to both parties, they must align calculation methods for giving members and the regulators information.
ASIC commissioner Greg Tanzer said it was necessary to promote consistency.
'While this reform is a significant change for superannuation trustees, it is intended to improve the comparability of superannuation products through consistency in calculations,’ he said.
ASIC said it was working with APRA to iron out any discrepancies between disclosure requirements and reporting standards but a breach would be considered a strict liability offence.
ASIC also released guidance on notifying members about superannuation transfers as part of guidance on a number of Stronger Super reforms.
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