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The Superannuation Regulator has followed through on its threats to prosecute those in the financial services sector who ignore new superannuation regulations in the lead up to the introduction of choice of fund from July 2005. The Australian Securities and Investment Commission ( ASIC ) has already commenced proceedings against a Tasmanian financial planner for breach of new superannuation laws. The alleged offence related to the failure of the financial adviser to give a written statement of advice to a client before switching their super from one product to another. According to General Manager of Tasplan Super, Neil Cassidy, ASIC's action is not surprising given its determination to avoid the sort of debacle which occurred in the United Kingdom following the deregulation of the superannuation industry in that country. In the UK alone, over $2 billion in member funds were lost to 'churn' as financial advisers scrambled to move clients into products which paid them greater fees or commissions. Cassidy believes that there will inevitably be a level of miss-selling ( no matter how tough ASIC gets ) and has warned Australians to ask questions if their adviser seems to be overly keen to make a switch and hasn't provided an adequate rationale for the change. "It is entirely appropriate that ASIC enforces laws designed to protect people from those who may attempt to unfairly receive a financial benefit from the retirement savings of ordinary Australians by unnecessarily recommending a switch of super products." Cassidy also welcomed news that ASIC would use 'mystery shoppers' to keep an eye on those providing financial advice - irrespective of whether they work for a bank, advisory firm or accountancy.