The Australian Securities and Investments Commission (ASIC) has announced it will begin shadow shopping retirement advice this year, which it says will target all advisers — including those from industry super funds.
In response to questions about whether the shadow shopping exercise would apply to all advisers in the retirement advice area, ASIC stated that there would be no exceptions.
“Essentially, anyone giving retirement advice could be shadow shopped,” said an ASIC spokesperson.
The Association of Financial Advisers chief executive Richard Klipin said he welcomed shadow shopping as an opportunity to get a fix on the progress the profession had made as a whole.
“The expectation of the advisory profession is that if ASIC is shadow shopping advisers in the area of retirement advice, then that’s exactly what they’ll do,” he said.
“It will be all advisers providing advice in the field rather than separating out certain types of advisers.”
Klipin also said he was pleased with ASIC Commissioner Greg Medcraft’s comments that it would not be an exercise in naming and shaming, and that it would involve an expert reference panel as part of the process.
“We’re keen that the shadow shop becomes the mirror to the industry and that the good work of advisers is recognised rather than some of the negative connotations and insights of previous shadow shops.
“I think the key way for shadow shopper 2011 to benefit the profession is that it’s done with the right spirit and the right intent,” he said.
