The sale of superannuation products via unsolicited telephone contact should be banned alongside the sale of insurance products, according to the Association of Financial Advisers (AFA).
The AFA has used a submission to the Australian Securities and Investments Commission (ASIC) dealing with proposed new anti-hawking provisions to pointed out that the Royal Commission had proposed a ban on the unsolicited sale of both insurance and superannuation.
“We support these proposals,” the AFA submission said.
“More broadly, we believe that the acquisition of financial products should be on the basis of financial advice or otherwise be client-initiated.”
The submission said the AFA was also very aware of the risk of consumer detriment where the needs and circumstances of the client are not adequately considered.
“For this reason, we think that there should be broad restrictions on unsolicited telephone sales of financial products,” it said.
The Financial Services Minister says the amendments to the SIS Act within the first QAR bill will “clarify the law to affirm the status quo”.
Superannuation funds have thrown their support behind the QAR reforms but want a “clear statement” that they will not be required to check all member SOAs.
In its latest report, the corporate regulator says the deduction of advice fees has led to instances of “inappropriate erosion of members’ balances”.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
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