superchoice_obligations

Their new obligations and may make mistakes despite a

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Unformatted text preview: and may make mistakes despite a They must not illegally provide kickbacks to employers for genuine effort to comply. choosing their fund as the employer fund, or engage in Accordingly, where the Tax Office identifies mistakes that misleading or deceptive conduct. result from genuine misunderstandings, it will generally not apply penalties for breaches of choice of superannuation FINANCIAL ADVISERS fund, provided that the employer commits to correcting the Financial advisers may provide advice to employees and mistakes within an acceptable time frame.This approach employers about which fund best meets their needs. will continue until the end of June 2006. However, there are strict rules that advisers must follow However, penalties will not be reduced where the employer when providing this advice. For example, they must: has not made any attempt to comply or has deliberately or ■ ensure their advice is appropriate recklessly avoided their obligations. Normal penalties will ■ not make false or misleading statements (particularly continue to apply to employers who do not comply with about a fund’s features, performance or suitability for other related obligations, such as providing minimum levels an employee or employer) of superannuation support. ■ disclose any payments they expect to receive for From July 2006, the Tax Office expects that the choice having an employee or employer become (or remain) a of superannuation fund arrangements will be well member of a particular fund, and understood and that employers will comply with their ■ disclose any conflicts of interest that might influence their advice. obligations. It will accordingly re-balance its compliance approach to reflect a stronger emphasis on verification activities, with non-compliance penalised in line with normal penalty guidelines. CHOICE CHOICE OF SUPERANNUATION FUND ■ 3 OVERVIEW OF ASIC’S COMPLIANCE APPROACH ASIC will continue to publish guidance about choice of ASIC regulates company and financial services laws to compliance expectations. This will includ...
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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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