Advice down under: 90% of advisers fail to comply with clients' best interests

Country has 25,000 advisers

Tom Ellis
clock • 1 min read

Nine-in-ten Australian financial advisers who provide advice to self-managed 'super trusts' have failed to act in the best interests of their clients, the country's corporate regulator told the financial services royal commission on Monday.

The Guardian has reported the royal commission heard "a litany of examples of inappropriate advice and misconduct including falsifying documents, with multiple cases of consumers paying ongoing fees and failing to receive regular advice reviews". The Australian Securities and Investments Commission (ASIC), the country's corporate regulator, said it recently asked an independent expert to review the quality of advice that had been provided by 137 advisers to self-managed super funds - a form of trust that provides up to four members flexibility in saving for retirement. In 90% of cases it...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Industry split on preparation for Consumer Duty report

Industry split on preparation for Consumer Duty report

The report is due on 31 July, one year since the regulation took effect

Sahar Nazir
clock 13 May 2024 • 1 min read
Is being Chartered worth it? Breaking down the perennial dissensus

Is being Chartered worth it? Breaking down the perennial dissensus

‘Many non-Chartered advisers are just as competent as those who are’

Hope Coumbe
clock 10 May 2024 • 4 min read
Andrew Goodwin: Financial advice and the Evangelista effect

Andrew Goodwin: Financial advice and the Evangelista effect

'Future of advice lies in independence, approachability and affordability'

Andrew Goodwin
clock 10 May 2024 • 4 min read