ASIC to focus on advice to aged

By Ben Abbott | 21/03/2011 4:15:00 AM | 0 comments

ASIC has revealed that it will focus on regulating financial advice provided to retirees, as part of a newly launched "shadow shop" of the financial planning industry.

ASIC Commissioner Greg Medcraft said in a statement that ASIC is focusing on retirement advice because the numbers of people getting ready to retire is growing, particularly baby boomers.

"Around 20% of the current super pool is in retirement products, such as de-accumulation products, and this is likely to double over the next decade, Medcraft said. "It’s critical people make good decisions about their retirement and get quality retirement advice to make the most of their retirement savings."

ASIC said the shadow shop would not "name and shame" financial planners, but would define good quality advice.

The advice provided by mortgage brokers in regard to equity release transactions was recently questioned by financial planning peak body the Financial Planning Association, which has argued consumers should be given a full financial plan, rather than go to a broker.

However, SEQUAL CEO Kevin Conlon argues that brokers are able to advise effectively on equity release transactions.

Related stories:

Broker equity release credentials disputed

Broker first to feel ASIC's newfound fire

 

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