REP 51 Report to the Parliamentary Joint Committee on late 2004 (and early 2005) superannuation switching advice surveillance
Released November 2005
This report provides more detail on the results of our super switching surveillance, as requested by the Parliamentary Joint Committee on Corporations and Financial Services.
In late 2004 and early 2005, ASIC undertook a surveillance looking at whether advisers were complying with their obligations to disclose, in the Statement of Advice (SOA) given to clients, the costs, possible loss of benefits and other significant consequences of following advice to switch super funds.
During this surveillance, ASIC uncovered some cases where the interests of clients were harmed by poor advice.
The purpose of this report is twofold:
- to explain the methodology behind the surveillance; and
- to illustrate the results of the surveillance in simple language.