Survey finds holes in financial advice

A shadow shopping survey in Australia reveals the superannuation industry isnÆt always working in the best interests of pension holders.
Financial advisors are often advising pension holders to switch superannuation funds against their best interests, according to a new survey released by the Australian Securities and Investments Commission ASIC on Thursday.

The shadow shopping survey covered 259 individual advisors and was designed to assess whether the advice given to consumers after the introduction of Super Choice last year complied with the law.

It found that 16% of advice was not reasonable given the clientÆs needs, and a further 3% was probably not reasonable. Where consumers were advised to switch funds, a third of this advice lacked credible reasons and risked leaving the consumer worse off.

The survey found that unreasonable advice was three to six...

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