Asic will conduct a nation wide shadow shopping

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Unformatted text preview: vice given is appropriate and that advisers manage conflicts of interest are requirements that financial advisers must always fulfil. For choice of superannuation fund, ASIC will focus on ensuring that employees get appropriate advice, particularly in relation to switching between funds. ASIC will conduct a nation-wide shadow shopping survey to monitor the advice that advisers give their clients. This survey will check whether the financial advice given complies with the law and, in particular, the switching obligations. ASIC has issued extensive guidance about appropriate advice obligations. It expects advisers to comply with them, and will take action where there are significant or wilful breaches, or where it considers there is potential for consumer harm. UNLICENSED FINANCIAL ADVICE ASIC has issued guidance about exemptions from the requirement to be licensed and about what is (and is not) financial product advice. This includes guidance for accountants who seek to rely on the licensing exemption relating to advice about setting up self managed superannuation funds. Advisers need to consider whether they need to be licensed or authorised, and also to be clear about the limitations of any authorisations or exemptions that they are seeking to operate under. CHOICE OF SUPERANNUATION FUND ■ 21 22 ■ CHOICE OF SUPERANNUATION FUND 05 what attracts the attention of the Tax Office, ASIC and APRA? CHOICE OF SUPERANNUATION FUND ■ 23 05 what attracts the attention of the Tax Office, ASIC and APRA EMPLOYERS have been paid for an employee but superannuation contributions have not been received by a fund for that WHAT ATTRACTS THE ATTENTION OF THE TAX OFFICE? Issues identified by Tax Office field staff In 2005–06, Tax Office field staff will check that employers are meeting their choice of superannuation fund and superannuation guarantee obligations. Employee complaints The Tax Office will investigate all cases where an employee claims that their employer: ■ has not made their superannuation guarantee contributions ■ did not offer them a choice of superannuation fu...
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This note was uploaded on 03/25/2014 for the course FOBE 302 taught by Professor X during the One '13 term at Macquarie.

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