ASIC has released Consultation Paper 216 Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs (CP 216) containing ASIC’s proposals to impose specific disclosure obligations on advisers.

ASIC’s recent review found that there is a need to improve the disclosure of information that may influence a decision to establish or switch to an SMSF including the need to:

• warn clients that SMSFs do not have access to the compensation arrangements under the Superannuation Industry (Supervision) Act 1993 in the event of theft or fraud, and
• explain other matters that may influence the client’s decision to set up an SMSF.

CP 216 also looks at the appropriate level of resources consumers should have before setting up an SMSF.

ASIC commissioned Rice Warner to examine the minimum cost-effective balance for SMSFs when compared with super funds regulated by the Australian Prudential Regulation Authority (APRA). CP 216 includes Rice Warner’s report: Costs of Operating SMSFs.

Rice Warner’s report also looks at the appropriate level of resources consumers should have before setting up an SMSF.