Alert

Who does this affect?

Super fund trustees and financial advisers

What do you need to do?

Determine whether you satisfy the conditions for the relief

Authors
Michelle Levy  
Partner

Michael Mathieson  
Senior Associate

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Michelle Levy  
Partner
T +61 2 9296 2437

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John Edstein  
Partner
T +61 2 9296 2129

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ASIC has issued class order relief for intra-fund superannuation advice. Trustees who hold an Australian Financial Services Licence authorising them (and their authorised representatives) to provide personal advice, can give personal advice to a member without complying with section 945A of the Corporations Act if the advice relates to the member’s interest in the fund.

This means that:

• the adviser does not need to determine the member’s relevant personal circumstances

• the adviser does not need to make reasonable enquiries of the member

• the advice does not need to be appropriate.

Care should be taken in relying on the relief

However, trustees and advisers should exercise caution in relying on the relief. The relief is only from section 945A. Therefore, the trustee or adviser can still be liable for poor advice under the law. This is a significant limitation of the relief.

Exceptions and conditions

There are exceptions and conditions.

The key exceptions are that the advice doesn’t relate to:

• any other financial product (other than insurance offered by the fund)

• an investment strategy for which the trustee must provide a product disclosure statement under section 1012IA

• an election by a member to commence a pension.

The key conditions are that:

• the adviser must tell the member in writing that the advice is limited to the member’s interest in the fund

• if the advice would result in an increase in fees, premiums or remuneration then the adviser must tell the member in writing.