The Australian Securities and Investments Commission (ASIC) says financial advisers are cutting corners when witnessing signatures for superannuation death benefit nomination forms.

It says widespread practices include having forms witnessed without the presence of the signatory and backdating forms, potentially leading to the nominations being invalid.

“Improper and unethical practices around binding death nomination forms can lead to very poor consumer outcomes,” ASIC Chairman Peter Kell said. “Advisers, licensees and their staff who engage in these practices should consider this a final warning.”

Death nomination forms direct the fund trustee to pay super and insurance benefits according to the instructions of the account holder.

ASIC says short cuts that jeopardise account holders’ wishes do not meet minimum advice and conduct standards expected by the regulator.