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ASIC has released two information sheets “to improve quality of advice provided by advisers on self-managed superannuation funds”.
Information Sheet 205 Advice on self-managed superannuation funds: Disclosure of risks (INFO 205) and Information Sheet 206 Advice on self-managed superannuation funds: Disclosure of costs (INFO 206) were released yesterday.
ASIC said the information sheets are intended to help advisers comply with their conduct and disclosure obligations under the Corporations Act and outline what ASIC looks at when undertaking surveillance in this area.
“They specify the types of risks and costs that an adviser should consider, discuss and then disclose to clients when providing advice on establishing, or switching to, an SMSF,” a statement from the regulator read.
“The information sheets also deal with the cost-effectiveness of an SMSF, making clear ASIC's view that an SMSF with a starting balance of $200,000 or below is unlikely to be in the client’s best interests and that advice to establish one below that threshold is more likely to be scrutinised by ASIC.”
ASIC deputy chairman Peter Kell said setting up an SMSF is such a significant financial step for consumers it is important the advice provided in the sector is of the highest quality.
“SMSFs are a key priority for ASIC and we will continue to target inappropriate advice about SMSFs in our surveillance work,” Mr Kell said.
“'ASIC wants to ensure that only those investors for whom an SMSF is suitable are advised to establish an SMSF and that our expectations around the standards of advice are clear.”
The information sheets are available to download from the ASIC website.
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