The Financial Planning Association (FPA) has sought to play down the implications of the Australian Securities and Investments Commission’s (ASIC) super switching report arguing that many of the issues raised have already been addressed.
In a response to the ASIC report, the FPA said that while there were findings in the report that some might take as being damaging to financial advisers, it was important to note that the report was based on super fund movements between August and November 2004.
“The purpose of the surveillance was to provide the basis for super switching guidance to the financial advice community, which ASIC released on June 24, 2005 – six days before the introduction of super choice. The 2004 surveillance was not intended to provide a report card on the quality of financial advice,” the FPA said.
It said two of the key findings of the ASIC report – that there was limited investigation of ‘from’ funds and that there was poor disclosure of the costs, loss of benefits and other significant consequences of advice – were compliance issues.
“If ASIC has identified cases of inappropriate advice in these areas, it has a responsibility to take action and FPA will fully support such moves,” the FPA said.
” The FPA is also confident that, given the guidance which is now in place and the training opportunities being provided, that FPA members are well equipped to provide advice which is in the interests of their clients.”
