ASIC releases guidance on SMSF advice

ASIC has released two information sheets to improve the quality of advice provided by advisers on self managed superannuation funds (SMSFs):

•  Information Sheet 205 Advice on self managed superannuation funds: Disclosure of risks. It explains the relevant conduct and disclosure obligations, the risks that should be considered by the adviser and disclosed to the client when providing personal advice about SMSFs, and the additional information that must be included in a Statement of Advice.
• Information Sheet 206 Advice on self managed superannuation funds: Disclosure of costs. It explains the relevant conduct and disclosure obligations, the need for advice on the cost-effectiveness of an SMSF – in particular, if the starting balance is below $200,000, the need for advice on the costs of setting up, operating and winding up an SMSF, and the need for advice on the continued suitability of an SMSF for the client.