ASIC to target MISs, managed accounts
Managed Investment Schemes (MISs) are not within the catchment for funding the Compensation Scheme of Last Resort (CSLR) but the Australian Securities and Investments Commission is going to dedicate resources to better detecting those deemed high risk.
The regulator revealed its intentions in its latest corporate plan alongside flagging a surveillance of financial services licensees recommending and offering managed accounts.
ASIC’s intentions may give some AFSLs pause about their approach to managed accounts, strengthening the position of players such as Evidentia/Lonsec.
ASIC said it would enhance its processes for early detection of high-risk MISs.
“This will inform targeted surveillances and, where we can identify misconduct, regulatory and enforcement action to protect consumers – including those investing retirement savings through self-managed superannuation funds (SMSFs),” the regulator said.
On managed accounts, ASIC said that with AFSLs offering the products, it would consider their compliance with their general licensee obligations and advice conduct obligations.
“Our surveillance will focus on governance frameworks management of conflicts of interest, and outcomes for consumers,” it said.
A substantial element of the ASIC corporate plan reflected the work it has done around the collapse of the Shield Master Fund and First Guardian Master Trust collapses, with the regulator saying it would conduct a review of superannuation trustee practices to “better understand the steps they have taken to disrupt the high-risk super switching model”.
“We will also conduct a review of advice licensees that use lead generation services.
“This work follows our 2024 review, which identified the use of high-pressure sales tactics leading to super switching,” ASIC said. “We will focus on how industry practices have changed in response to our 2024 review.”
The regulator said it would also continue surveillance around personal advice provided to retail clients on SMSFs, with particular focus on establishment advice.
“We will assess the quality of advice given and the policies and procedures of AFS licensees,” it said.
As usual, too frigging late (but better late then never). Like cold calling unsuspecting Australians, MISs have been complained about for a very long time, only to be dismissed by the regulator.
Something then goes wrong, and advisers pay for the wrongdoing, via cslr and asic levy. Joke.
Definitely shutting the gate after the horse has bolted. ASIC and the politicians listened to the FSC so MIS’s were excluded from the CSLR. Who says that lobbying doesn’t work, all it takes is to have money and future job opportunities for the people you are approaching.
Who allows any MIS to be registered in Australia even by well know fraudsters = ASIC.
Who fails to regulate MIS once they are registered for Australian public to scammed from = ASIC.
Who pays for all these Dodgy MIS product failures and frauds that the Regulator have allowed to flourish = Innocent Adviser.
ASIC ARE AND CONTINUE TO PROVE TO BE A BASKET CASE OF FAILURES, that then constantly blame Advisers.