The Australian Securities and Investments Commission (ASIC) has revealed that it intends to investigate AFSL holder Anne Street Partners Financial Services for providing inappropriate SMSF advice to customers.
Specific issues that will be investigated include the low balances with which SMSFs have been opened, the generality of advice provided to each client, and failures in comparing existing provisions to that provided by a SMSF.
Surveillance of the company by ASIC highlighted a number of failings that mainly revolved around failing to consider the individual needs and desires of the individual client. This can have a very significant impact on the customer because plans may not be best suited to their retirement plan or their investment strategies.
An independent review will now take place to examine the advice that was provided to customers. The management, monitoring and conflict resolution practices will also be investigated in the review.
ASIC continues to monitor companies that provide financial advice to ensure that SMSFs are beneficial and well managed.
