ASIC sets focus on funds in latest corporate plan

In its latest corporate plan, ASIC said it will continue to focus on ensuring better retirement outcomes and member services.

The regulator stated it will be focusing on better retirement outcomes and member services in the superannuation sector, including improving services for superannuation fund members and driving industry progress towards improving retirement outcomes.

It will also be keeping a close watch on compliance by superannuation trustees and providers of managed investments and financial advice.

The corporate plan said the Australian Securities and Investments Commission’s (ASIC) targeted surveillance of SMSFs will assess the quality of advice by financial advisers and consider the role of AFS licensees.

“Where appropriate, we will take enforcement or other regulatory action against misconduct,” it said.

“[We will be] driving industry progress towards improving retirement outcomes and continue to monitor trustees’ implementation of the retirement income covenant. This will help drive compliance with regulatory obligations and improve retirement outcomes for superannuation members.”

It continued that where it identifies poor conduct or practices, it will take enforcement or other regulatory action as appropriate.

“The superannuation sector is experiencing structural changes. Around 3 million Australians will become eligible to draw from their superannuation in the next 10 years,” ASIC said.

“As more members reach their preservation age, superannuation trustees will need to ensure their funds’ investment mix can accommodate the changing demands of their members. The size of the superannuation sector is forecast to continue growing. This growth may extend the recent trend of rapid growth in private markets.”

Additionally, the corporate plan included supporting the Delivering Better Financial Outcomes (DBFO) law reform with ASIC, stating it will support the Treasury as it progresses the DBFO law reform package, and the government’s response to the Quality of Advice Review.

“We will continue to provide input into the reforms, and help implement any changes through guidance, legislative instruments and other relevant ASIC documents,” it said.

For the broader superannuation sector, ASIC said it will be focusing on several key activities, including acting against misconduct resulting in the inappropriate erosion of superannuation.

“We will take targeted enforcement action against cold-calling superannuation switching models that result in the inappropriate erosion of superannuation. The expected time frame for this activity is ongoing,” it said.

Another key activity will be taking action against member services failures in the superannuation sector, and it is committed to targeting misconduct with a particular focus on member experience, including superannuation trustees’ provision of services to members.

“We will continue our multiyear project reviewing industry compliance with laws relevant to contact centres and trustee administration practices,” it said.

“We will complete our surveillance on death-benefit claims handling. Where we identify poor conduct, we will take enforcement or other regulatory action.”