Ms Eccleston noted that critics of intra-fund advice have stated that it is held to “less demanding legal standards than other forms of personal advice”.

“ASIC holds intra-fund advice to the same standards and stringent rules as other personal advice,” she said.

“Accordingly, financial advisers must act in the best interests of their client and comply with related obligations, regardless of whether they are providing intra-fund advice or other personal advice.”

She also noted that ASIC incorporates reviews of intra-fund advice in its surveillance activities focused on advice quality and whether personal advice complies with the requirements of the law.

“We are currently finalising our review of a sample of intra-fund advice provided earlier this year after the start of the COVID-19 pandemic,” she said.

Ms Eccleston said it was important to put intra-fund advice into context and that not all of the help provided to members by super funds about superannuation is financial advice.

“When a fund’s representative gives a member factual information about a financial product, the representative does not make a recommendation, so giving factual information is not financial product advice,” she said.

“Members can also seek help from their superannuation fund that involves the provision of general or personal advice about a financial product. General advice is a financial product recommendation that does not take the member’s financial objectives, situation or needs into account.”

Ms Eccleston stated that ASIC expects advisers providing intra-fund advice to clearly explain that the advice is limited to certain topics about the member’s superannuation.

“Where a member’s personal circumstances require advice beyond the scope of intra-fund advice, advisers should let them know what options they have for seeking comprehensive financial advice,” she said.

“Advice providers must also exercise their judgement in appropriately scoping the advice they provide. If they cannot act in the best interests of the member due to the limitations of intra-fund advice, they should not provide the advice. Instead, they should refer the member elsewhere.”

ASIC’s role in regulating intra-fund advice, she said, is to ensure that trustees use intra-fund advice appropriately for their members, taking into account the potential conflicts of interest in setting up an advice system that advises on in-house products.

“[It is also] to ensure advisers providing personal intra-fund advice meet the consumer protection requirements set out in the Corporations Act, such as the best interests duty and related obligations,” she said.

“In line with ASIC’s increasing role in the regulation of superannuation and as the regulator for financial advice, ASIC is actively monitoring this area to improve advice for superannuation members.”

ASIC is currently undertaking work on a range of issues concerning the framework for the provision of advice, she said, including seeking input from industry about what can be done to help industry provide affordable and limited advice to consumers.

“The focus of ASIC’s work is on impediments within ASIC’s control. We appreciate that the superannuation industry as well as other parts of the financial services industry are reflecting on these issues and [we] encourage submissions to our consultation paper,” Ms Eccleston said.