POWERED BY MOMENTUM MEDIA
Asset consultants in the clear by ASIC's standards
Asset consultants' business models may contain some conflicts of interest but do not warrant further legislation, according to an Australian Securities and Investment Commission (ASIC) review.
ASIC Commissioner Greg Tanzer said ASIC's review of asset consultants' role in the superannuation industry found some fee structures based on preferred services and in-house funds contained conflicts of interest.
ASIC also found some asset consultants recommended products to multiple clients where capacity to participate in the product may have been limited.
"While there were no apparent significant or systemic issues of concern warranting an immediate regulatory response, we did identify conflicts of interest present in the business models reviewed which need to be managed appropriately," Tanzer said.
He said the review's findings were positive and included a growing trend towards in-house investment management functions, and a declining circle of clients due to merger and consolidation activity.
Tanzer said asset consultants appeared to possess a new post-GFC outlook regarding asset allocation, but still struggled to identify growth assets over different time periods.
Asset consultants were also concerned about the short-term focus of some superannuation trustees and their focus on peer risk, the report said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
