Is it chutzpah or hubris that the Commonwealth Government, through ASIC, is offering financial advice to citizens. Perhaps it is hallucinogenic drugs.
Fresh this morning, ASIC has directed citizens to its MoneySmart website to help people:
in organising your household budget, getting on top of debts or saving for something significant.
Kind of ironic that ASIC falls under the broader Treasury portfolio. I wonder whether the budgeting app was tested by the budget group?
Here are ASIC’s 6 pieces of advice. Make sure you are sitting when you read this.
- Review your finances
- Take control of your debts
- Create a savings buffer
- Maximise your super
- Buying a car in 2017?
- Seeking financial advice
And the corker – the government encouraging voluntary additional superannuation contributions also. Breathtaking.
Hat tip to Dr DL who points out the conflict of interest in the Government (via ASIC) plugging Government bonds as an investment:
Bonds range from very safe (for example, Australian Government bonds) through to very risky (unlikely to repay your money). Its very important to know what you’re investing in, as not all bonds or fixed interest investments are the same.
(With the power to print money, it is next to impossible for the Australian government to default on its bonds. That does not mean investors will “get their money back”. Ask the Zimbabweans.)
A couple of other points to consider:
- Does ASIC have an Australian Financial Services Licence allowing it to give general financial advice?
- Does ASIC have a policy for the management of conflicts of interest, a conflicts of interest register and the phalanx of other registers and plans required of regular AFSL holders?
Where is the regulator? Can ASIC as the regulator of AFSLs also regulate itself?
Clearly there is a culture problem that needs “cleansing”. Where is the Chairman? Is not a speech warranted?