In its detailed "key issues outlook for 2025," ASIC outlined significant transfers of superannuation funds into high-risk areas, such as real estate investments. These funds often find their way to lead generation firms, which employ high-pressure tactics and social media algorithms to identify and target potential investors. These trends mirror concerns previously reported by Professional Planner about SMSF-focused property spruikers encouraging risky investment decisions.
ASIC remains vigilant, promising not only to keep raising awareness about these strategies but also to step in with legal enforcement when superannuation funds are found to be exploited. A surveillance initiative, which started at the SMSF National Conference in Brisbane last year, is actively assessing the quality of financial advice surrounding the establishment of Self-Managed Super Funds (SMSFs).
The spotlight isn't just on external advisers, though. ASIC is also scrutinizing internal super fund operations amid growing complaints from members. Between 2021 and 2023, issues filed with the Australian Financial Complaints Authority concerning poor service from super funds doubled, pointing to widespread dissatisfaction. As 3 million Australians become eligible to access their superannuation over the coming decade, ASIC's review aims to ensure funds and trustees meet rising expectations.
In tandem with ASIC's efforts, Treasurer Jim Chalmers and Minister for Financial Services Stephen Jones are readying a new set of service standards for super funds, set for public consultation soon. These will address emerging challenges and the growing demand for transparency and accountability within the sector.
Minister Jones is also pushing forward with his 'War on Scams' initiative, focusing on cutting-edge financial fraud and scams through technology. "Evolving types of financial frauds and scam continue to threaten consumers, investors, and small businesses," ASIC stated. The rise of cryptocurrency-related scams and fraudulent celebrity endorsements has alarmed authorities, prompting action to protect consumers.
In response to these threats, ASIC has dismantled more than 7,300 scam websites since August last year, many of which aimed to deceive individuals using impersonated endorsements or misleading content. An Investor Alert List, which now grows by 20 entries weekly, serves as a critical resource for Australians to identify potential scams.
Lastly, ASIC is turning its lens toward the burgeoning private market fund sector, seeking input on whether current regulations need adjustment to reflect the dynamic interplay between public and private financial markets. ASIC is conducting enhanced surveillance, reviewing the oversight practices of selected retail private credit fund entities to ensure asset valuation and liquidity management are up to par.
These proactive measures, including ongoing collaboratives with banks to improve responses to financial hardship, underscore ASIC's commitment to shielding the economy and investors from predatory financial practices as we face complex market shifts.