The Australian Securities and Investments Commission (ASIC) has warned corporate superannuation advisers that all employers have to be treated as “retail clients” regardless of their size.
The regulator in late December issued guidance on the issue making clear that the size of a particular employer did not alter their status.
“We wish to make it clear that no ‘small business’, asset value or other size consideration applies,” ASIC’s assistant director of compliance, Louise du Pre said.
She said that financial advice provided to any employer about superannuation or Retirement Savings Account products was considered advice to a retail client, and retail client obligations continued to apply.
Du Pre said ASIC was currently conducting nation-wide surveillance to monitor the advice superannuation trustees, licensed advisers and tender consultants were giving employers with respect to superannuation.
“ASIC has found that most superannuation trustees are only providing general advice to employers and have developed compliance systems to ensure they act within their general advice obligations,” she said. “We have however, found a divergence in levels of compliance by advisers and tender consultants with their advice obligations when advising employers.”
