The Australian Securities & Investments Commission (ASIC) has announced its shadow shopping research in 2011 will focus on the quality of financial advice provided by advisers to people at retirement, and won’t be ‘naming and shaming’.
ASIC Commissioner Greg Medcraft said ASIC is focusing on retirement advice because the numbers of people getting ready to retire is growing, particularly baby boomers: “It’s critical people make good decisions about their retirement and get quality retirement advice to make the most of their retirement savings,” said Mr Medcraft, who went on the qualify the shadow shopping exercise in relation to the proposed Future of Financial Advice reforms:
… our shadow shopping will not be focused on ‘naming and shaming’ financial advisers
“Given the current Future of Financial Advice Reforms, our shadow shopping will not be focused on ‘naming and shaming’ financial advisers. The objective of the shadow shopping exercise is to define good quality advice to give industry guidance and help consumers maximise their retirement savings,’ said Mr Medcraft.
ASIC says its retirement shadow shopping research also aims to:
- Improve ASIC’s understanding of how consumers and investors view and experience the retirement financial advice process
- Provide general feedback to the financial advice industry, in particular identifying areas where conduct needs to be improved; and identify areas of suspected misconduct for further action
- Encourage continued professionalisation of retirement advisers
- Encourage people to seek financial advice when planning for retirement
