Fund Regulatory Update

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ASIC issues financial adviser warning and reprimand information sheet

The Australian Securities and Investments Commission (ASIC) is required to hand out warnings and reprimands to financial advisers in specific circumstances after the legislation was introduced after the Hayne Royal Commission. An information sheet has been published regarding the warnings and reprimands, when they will be issued, and so on. The differences between a warning and a reprimand are made clear.

The warning or reprimand will be sent by email and will contain reasons, though this won’t be recorded on the Financial Advisers Register and those warned or reprimanded will generally not have their names published.

ASIC updates seven legislative instruments

The Australian Securities and Investments Commission (ASIC) has recreated and combined a set of legislative instruments for some financial services disclosure requirements that were all coming to a close in the coming 24 months.

There are three new legislative instruments:

  • Instrument 2022/496 - offers relief to product disclosure statements (PDS) in-use notices for employer-sponsored superannuation and choice product dashboard disclosure

  • Instrument 2022/497 - offers relief to shorter PDSs and PDS obligations for super trustees and IDPS operators

  • Instrument 2022/498 - offers relief to the giving of financial services guides in “time-critical situations”

ASIC: ‘how to avoid greenwashing’ information sheet for asset managers

ASIC has published an information sheet for managed funds and superannuation funds on how to avoid greenwashing in promoting their sustainability and ESG-related products. Greenwashing, according to ASIC, means misrepresenting the extent to which a financial product or strategy is sustainable, ethical or environmentally friendly.

SMSF Association urging specialised training for advisers

In its submission to the Treasury’s Quality of Advice Review (QAR), the SMSF Association has called for specialised training for self-managed superannuation fund (SMSF) financial advisers. The recommendation is in line with FASEA’s Financial Planners & Advisers Code of Ethics 2019 Guide, the Productivity COmmission’s Superannuation 2018 report, and ASIC’s Report 575. The SMSF Association also recommended advisers have access to some client Australian Tax Office superannuation reports.

Squirrel to pay fine for misleading marketing

Fintech Squirrel Superannuation Services is to pay $55,000 in penalties for false and misleading marketing relating to marketing materials in 2015 that made misleading claims about investor returns. Squirrel is a platform that allows customers to manage a self-managed superannuation fund.