ASIC tells super funds to make calculators product advice agnostic

Superannuation funds have been placed on notice by the Australian Securities and Investments Commission (ASIC) that any tools and superannuation calculators they use have to be product agnostic.

Releasing new guidance on superannuation calculators and retirement estimates as part of underwriting the Retirement Income Covenant, the regulator also made clear that it believed the superannuation calculators and retirement estimates should be “a helpful prompt for consumers to review their financial situation, and if appropriate, seek further information or financial advice”.

“Entities, such as superannuation trustees, that provide these tools to consumers within the terms of ASIC’s relief are exempt from certain regulatory requirements related to providing personal financial advice,” the ASIC statement said before going on to make clear the position in relation product advice.

ASIC commissioner, Danielle Press said she believed the regulator’s guidance would provide greater clarity to trustees about how they could use calculators and retirement estimates part of their strategies under the new covenant.

“The updated relief will also provide greater flexibility in how trustees can give retirement estimates to their members, including through interactive tools. It introduces a single framework for setting economic and financial assumptions across both retirement estimates and superannuation calculators,” Press said.

“We expect trustees that choose to provide these tools to do so in a way that fosters informed decision making by members, without promoting specific financial products.”

ASIC said it was providing a six month transition period during which providers of superannuation forecasts could rely on new and existing guidance.

ASIC’s relief to superannuation funds accepts that superannuation calculators and retirement estimates “may involve personal financial advice” but that the fund trustees have relief from the licensing and personal advice requirements.

Under ASIC’s relief, a financial calculator, including a superannuation calculator, may be provided by any person, and a retirement estimate may only be provided by a superannuation trustee.