ASIC has warned employers who do not have AFS licences they should avoid providing financial advice to employees seeking guidance about super choice.

ASIC says that employers are under no obligation to talk with their employees about super choice, which comes into force on 1 July. However, it anticipated that employers would be asked by employees
about how they could select their own fund.

You need to be careful that statements you make to employees about superannuation or super choice are not financial product advice. If you give financial product advice without being licensed or authorised to do so, or if what you say is misleading, you may be breaking the law. Moreover, advice that is inappropriate to employees’ circumstances could influence employees to make choices that cost them money.

ASIC has issued a list of frequently asked questions to explain what constitutes financial advice, and what information employers can offer without breaching the Corporations Act.