ASIC has wasted no time in actioning its
Corporate Plan with poor compliance by responsible entities and
superannuation trustees firmly in ASIC's sights.
Recent surveillance by ASIC has uncovered breaches of law and
deficiencies in compliance measures by some responsible entities
and superannuation trustees.
As we have previously reported, ASIC will be investigating
investment banks, issuers, brokers, lenders, finance brokers,
responsible entities, directors, auditors and insolvency
practitioners over the next four years as part of its ongoing
consumer protection mandate.
Responsible entities and trustees of superannuation funds should
carefully review their existing policies and procedures with
today's public release by ASIC of systemic compliance issues
identified during its surveillance activities.
For responsible entities, ASIC found:
defective or misleading disclosure and advertising
poor internal control over the review and authorisation of
disclosure and advertising material;
deficiencies in compliance and governance frameworks, including
poor internal control and ongoing monitoring processes; and
inconsistencies between funds' governing documents and
ASIC noted that superannuation trustees are not complying with
all aspects of the Government's "Stronger Super"
reforms, especially in disclosing executive officer remuneration
and in complaints handling. However, the primary sources of
non-compliance centre around defective or misleading disclosure and
advertising material, in particular:
how rollover forms are being presented to new members;
the promotion of "self managed" investment options;
advertising material not containing balanced messages about
product risks and benefits.
With ASIC's intense scrutiny of AFS licensees, it is
critical that compliance systems, policies and procedures are
properly documented and designed in a way to ensure ongoing
compliance with the law.
If you have concerns about your compliance with any of the areas
ASIC has identified above, please contact a member of our team.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Most awarded firm and Australian deal of
Australasian Legal Business Awards
Employer of Choice for
Equal Opportunity for Women
in the Workplace (EOWA)
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This newsletter includes links to recent documents relating to superannuation, funds management & financial services.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).