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ASIC imposes new SMSF disclosure rules

The Australian Securities and Investments Commission has released proposed guidance for financial advice given to SMSF trustees, including new disclosure rules.

In a statement released today, the corporate regulator detailed its follow-up guidance to the taskforce findings of “room for improvement” in the SMSF advice space.

Consultation Paper 216 Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs, released today, imposes new disclosure obligations on financial advisers.

Under the new proposed rules, advisers will need to “warn clients that SMSFs do not have access to the compensation arrangements under the Superannuation Industry (Supervision) Act 1993 in the event of theft or fraud” and “explain other matters that may influence the client’s decision to set up an SMSF”

"When it comes to planning your retirement, establishing an SMSF is a very significant decision. We want to help ensure that the SMSF sector is healthy, and that investors make informed decisions about SMSFs," said ASIC deputy chairman Peter Kell. 

"Our recent surveillance of the sector found that advice was not up to a standard we would like, so we will continue to work with the industry to ensure investors receive good quality, tailored advice from their accountant or financial planner."

 More to come.