Australia’s securities regulator has sounded a serious alarm over financial advice on self-managed super funds (SMSFs) — revealing that 27% of reviewed cases could cause “serious harm” to retirement savings.
According to the Australian Securities and Investments Commission (ASIC),
➡️ 62% of SMSF recommendations failed to meet the legal duty to act in clients’ best interests.
➡️ Only 38 out of 100 advice files were deemed compliant.
💬 Key Findings
“Many people set up SMSFs for more control — but they aren’t suitable for everyone,”
said ASIC Commissioner Alan Kirkland.
“Advisers recommending them without assessing suitability are putting clients’ futures at risk.”
SMSFs now represent one-quarter of Australia’s A$4.3 trillion superannuation sector, yet ASIC’s review exposes systemic weaknesses in advice quality and oversight.
The probe follows a string of fund failures — including Macquarie’s Shield Master Fund (2024) and First Guardian Master Fund (2025) — that have shaken investor confidence and intensified scrutiny of super trustees.
🌱 Regulatory Action Expands
- HESTA: fined A$37,560 over misleading “carbon neutrality” claims
- Prime Super: fined A$18,780 for allegedly misleading investors on tobacco exposure
ASIC’s latest move signals that integrity, suitability, and transparency in retirement advice will remain a top enforcement priority going into 2026.
🔹 The Takeaway
As Australia’s retirement market matures, regulators are making it clear:
Control without competence is risk — not freedom.
For advisers, this marks a pivotal moment to rebuild trust through evidence-based, client-first strategies.