ASIC - Monitoring and risks of super advice fees

Question

1. While existing rules require member consent and impose a range of member protections, policymakers and regulators are continuing to grapple with whether the current settings provide sufficient safeguards against the erosion superannuation balances due to excessive advice fees. The gov't is currently examining reforms - including advice fee caps, and restrictions on fee reductions for switching advice... a. How does the regulator currently monitor advice fee deductions? 2. What data does the regulator collect to assess whether advice fees deducted from superannuation balances are delivering value to members, and where do you see the key information gaps? 3. Do you have concerns that the current arrangements may not always align with other members best financial interests? 4. Are there particular forms of switching activity or business models that have attracted heightened regulatory attention in recent times? 5. What do you see as the greatest emerging risks associated with advice fees being deducted from superannuation accounts?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000232 ASIC - Monitoring and risks of super advice fees.pdf (opens in a new tab)