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Unformatted text preview: sment (low,
medium, high or extreme) with commensurate supervisory
action (normal, oversight, mandated improvement or
restructure). Under this risk-based approach, more
intensive supervision will be applied to funds assessed as
having a higher risk of failure and to funds which will have
a large impact if they do fail. CHOICE OF SUPERANNUATION FUND ■ 19 ASIC’S COMPLIANCE APPROACH Advertising Superannuation funds and trustees can expect ASIC to ASIC will take action on advertisements that are show tolerance with those that are genuinely trying to misleading, deceptive or that misrepresent the features, do the right thing under choice of superannuation fund. suitability or performance of a fund. It will particularly focus However, it will take a tougher approach where breaches on comparative advertising and representations about past are deliberate, relate to long-standing legal obligations or performance and fees and costs. could cause detriment to consumers. ASIC is currently monitoring advertisements and More information on how ASIC will ensure superannuation promotions across all media (including direct marketing) funds and their trustees comply with speciﬁc obligations about superannuation, choice of superannuation fund under choice of superannuation fund is provided in the and self managed superannuation funds. It also accepts sections below. complaints from consumers and industry representatives
about advertisements. Licensing
ASIC will monitor unlicensed activity after the introduction Kickbacks of choice of superannuation fund. This will involve To make sure that employers choose employer funds looking at the activities of unlicensed persons, including that are in their employees’ best interests, ASIC will accountants, as well as the conduct of licensees who actively monitor allegations of inducements offered by may be acting outside their authorisations. Trustees of superannuation fund trustees (or their associates) to superannuation funds that are giving ﬁnancial advice need employers. It encourages employers to inform ASIC whe...
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