The final report recommends ASIC should have greater oversight of the superannuation products sitting on the approved product lists of AFSLs.
The Productivity Commission calls for all Australian Financial Services Licensees (AFSL) to "immediately" be required by the government to report to ASIC the number of superannuation products on their APLs and the proportion of in-house products.
It also means AFSLs advising ASIC what proportion of in-house products are actually recommended to the clients.
"ASIC should publish this information annually. ASIC should also conduct selected audits of the information received to facilitate assessment of the effectiveness of advisers in meeting clients' best interests," the report said.
Take "general" out of advice
The same recommendation (8 of 31) has also asked the Government to immediately amend the Corporations Act 2001 to ensure that financial advice can only be used when personal circumstances are considered.
This renews the Productivity Commission's previous call for the Government to rename the term 'general advice' defined under the Future of Financial Advice legislation.
"This term has led many consumers to think they are receiving advice relevant to their personal situation when they are only being provided with product information or marketing material," the report says.
"The term 'advice' should only be used in association with advice that takes into account personal circumstances."