superchoice_obligations

See chapter ve of this booklet for more information

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Unformatted text preview: andards.com.au paid. BE APPROPRIATELY LICENSED Generally, a person who carries on a financial services ASIC will be issuing guidance for advisers about switching advice. See chapter five of this booklet for more information. business, including providing financial product advice, needs to be licensed by ASIC or authorised to give advice on behalf of a licensee (an authorised representative). Certain exemptions apply. CHOICE OF SUPERANNUATION FUND ■ 11 COMPLY WITH DISCLOSURE OBLIGATIONS If an adviser gives either general or personal financial advice, they must prepare and provide a financial services guide. The financial services guide should confirm whether the adviser is authorised to give advice about superannuation. For personal advice, advisers must also provide their retail clients with a statement of advice, generally at the time the advice is given. The statement of advice must clearly and unambiguously set out the advice and the basis of the advice. Where advisers recommend a switch of funds, the statement of advice must also include information about specific costs and consequences of the switch, including loss of any benefits. DISCLOSE ALL COMMISSIONS Financial advisers must disclose all commissions and other payments they expect to receive as a result of having an employee or employer become or remain a member of a particular fund. This includes ‘soft’ dollar payments that might be capable of influencing their advice, such as subsidised business equipment, adviser conferences and volume bonuses. 12 ■ CHOICE OF SUPERANNUATION FUND 03 what you can expect CHOICE OF SUPERANNUATION FUND ■ 13 03 what you can expect CONSEQUENCES OF NON-COMPLIANCE BY EMPLOYERS Where an employer does not meet their choice of superannuation fund obligations for their eligible employees, they may be liable for the choice shortfall, other penalties and/or prosecution. The choice shortfall applies where the employer has made contributions for an eligible employee to a complying fund but did not: ■ offer the employee a choice of superannuation fund and the empl...
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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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