Advisers in ASIC’s crosshairs over poor superannuation advice

The regulator claimed that by following the advice, clients exceeded the superannuation contribution caps or untaxed plan cap, resulting in them paying more tax.

ASIC acted after it identified multiple instances from breach reports submitted by Australian Financial Services licensees.

It said it convened multiple sitting panels of the FSCP because it was concerned the financial advisers had failed to comply with the best interests duty and give appropriate advice to their clients.

In a statement, ASIC said it was also concerned the advisers had breached the Financial Planners and Advisers Code of Ethics.

The panels have so far given:

• two financial advisers reprimands;
• one financial adviser a written direction to appoint an independent person to audit the next 10 pieces of advice intended for retail clients, and submit a report to ASIC on the adviser’s compliance; and
• one financial adviser a direction to undertake continuing professional education in the next 12 months (in addition to their ordinary education and training requirements).

The FSCP’s decisions are published on the FSCP Outcomes Register.

ASIC said it continues to refer financial advisers to the FSCP to address and highlight the misconduct, its impact on consumers and the importance of financial advisers complying with their advice and conduct obligations while always acting in a manner that promotes the value of diligence.

It continued that unsuitable superannuation advice resulting in adverse consumer outcomes remains a key issue for 2025.

“Advisers must identify their clients’ personal circumstances in relation to superannuation caps, so that advice provided is in their clients’ best interests,” it stated.

“Where we identify thematic misconduct involving financial advisers, we will consider taking regulatory action including referring financial advisers to the FSCP.”

The relevant AFS licensees had compensated the affected clients for any financial and non-financial loss suffered.

Furthermore, the regulator reminded financial advisers they must identify their clients' personal circumstances in relation to superannuation caps, so that the advice provided is in their clients’ best interests.

Additionally, it stated that AFS licensees should take steps to ensure their representatives are adequately trained around giving superannuation advice involving contributions and superannuation rollover and remind advisers to remain diligent with their advice processes to act in the client’s best interests.

Finally, it reminded AFS licensees they must have arrangements for monitoring and supervising representatives and for remediating clients if non-compliant superannuation advice is identified.