In a keynote speech, ASIC Chair Joe Longo said the Australian Securities & Investments Commission is stepping up surveillance, consumer messaging and enforcement to address suspected misconduct that lures consumers into switching superannuation into complex, high-risk investments, often via platform products or self-managed super funds. He described the conduct as involving multiple “gatekeepers” beyond advisers, and argued it requires a coordinated response from industry, regulators and government. Longo cited Australian Financial Complaints Authority data showing investment and advice complaints rose 18% in 2024–25, self-managed super fund complaints rose 95%, and complaints alleging failure to act in clients’ best interests rose 124%. He pointed to Shield and First Guardian as examples, involving more than AUD 1 billion invested by over 11,000 people, and said ASIC’s focus has been on preserving assets while investigations continue. Current actions include a second consumer awareness campaign on high-risk super switching and increased enforcement work, with new financial advice-related investigations doubled since last year and new investment management investigations almost doubled; in the Shield and First Guardian matters ASIC has more than 40 investigators and has been in court more than 40 times, including to seek stop orders, appoint receivers and liquidators, preserve assets, restrict travel, execute search warrants with the Australian Federal Police, and cancel licences and ban advisers. Over the next year, ASIC plans to review platform trustee practices to assess steps taken to disrupt the high-risk switching model and to scrutinise advice licensees using lead generation services. Longo also flagged areas ASIC believes may warrant law reform, including conflicts of interest, higher standards for gatekeepers (research houses, advisers, super trustees and responsible entities), and managed investment scheme reforms, particularly expanded powers for recurrent data collection and transparency, including for unregistered schemes.
Australian Securities & Investments Commission 2025-07-30
Australian Securities & Investments Commission outlines enforcement surge on high-risk super switching and signals push for managed fund data reform
In a keynote speech, ASIC Chair Joe Longo announced increased surveillance, consumer messaging, and enforcement to combat misconduct in superannuation switching into high-risk investments. Highlighting a rise in complaints, Longo cited cases involving over AUD 1 billion. Current actions include a consumer awareness campaign and intensified enforcement, with new investigations nearly doubling. ASIC plans to review platform trustee practices and scrutinize advice licensees, while considering law reforms on conflicts of interest and higher standards for gatekeepers.