SIAA again questions AFCA actions on ‘wholesale’ | Australian Markets
The capability of the Australian Financial Complaints Authority (AFCA) to simply accept complaints from self-managed superannuation funds (SMSFs) which have been labeled as wholesale has again come into query.
The Stockbrokers and Investments Advisers Association (SIAA) has raised AFCA’s actions within the context of the broader impacts of the levy preparations for the Compensation Scheme of Last Resort (CSLR).
As nicely, the SIAA has raised the difficulty with Treasury.
Canvassing the difficulty in its most up-to-date month-to-month replace, the SIAA referenced “AFCA’s current strategy to accepting complaints from SMSFs which have been labeled as wholesale if these funds maintain much less than $10 million in internet property.
It mentioned AFCA’s view is that below the law, if an adviser supplies advice to a trustee in relation to an SMSF, it should be handled as a retail consumer till the SMSF has $10 million or more in property.
“SIAA has communicated its concerns about the impact of AFCA’s determinations to Treasury, the government and the coalition,” it mentioned. “We have also raised concerns about the potential impact of these decisions on the sustainability of the CSLR.”
“It is unclear how many claims that have been referred to the CSLR are from wholesale clients that AFCA has re-classified from wholesale to retail,” it mentioned.
The SIAA has made clear its issues concerning the growing listing of managed investment scheme collapses on the price of funding the CSLR and the style during which they impression the price of the 2027 and 2028 financial yr levies.
“It will be very difficult to attract new advisers to the industry while ever they are required to contribute to these levies,” it mentioned.
“At the second the industry is ready for the outcomes of the Treasury review and the Minister’s choice on what to do with the blow out within the FY 2026 levy.
“SIAA continues to advocate for change to the scheme and will continue to update members on developments.”
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