ASIC has announced it has issued infringement notices against 3 self-managed superannuation fund advisers as a result of concerns about their advertising.
Esuperfund Pty Ltd has paid $30,600 in penalties after ASIC issued three infringement notices for false or misleading online advertising.
The advertisements related to Esuperfund’s business of providing SMSF establishment and administration services online to clients.
ASIC was concerned that:
•one advertisement inaccurately represented that clients who engaged Esuperfund to establish an SMSF in 2014 would not incur any fees or costs in establishing or operating the SMSF
•an article titled ‘9 Benefits of Setting Up A Self Managed Super Fund’ misrepresented the costs and benefits of SMSFs compared to retail and industry superannuation funds, and
•a third advertisement falsely represented that ASIC reviewed Esuperfund’s operations annually to ensure that it complied with its licensing obligations.
SuperHelp Australia Pty Ltd has paid a $10,200 infringement notice penalty after making potentially misleading statements about the cost of setting up a SMSF using SuperHelp’s administration services.
The representations were that fund set up was free and that pension fund set up was free, subject to ‘*conditions’. No conditions were disclosed in the advertisement.
ASIC was concerned that although advertised as free, the conditions for fund set up required investors to pay $475 upfront – half the annual administration fee – to be eligible for ‘free’ fund setup. There were also restrictions on the number of members a fund could have and how many investments could be made.
ASIC was also concerned that pension fund setup was not free under any circumstance for investors under 60 years of age.
Your Super Accountant has paid a $2,040 infringement notice penalty after making potentially misleading statements about the cost of setting up a SMSF using Your Super Accountant’s administration services.
The representations on the website homepage were that fund set up was free. The website homepage did not disclose any conditions.
ASIC was concerned that although promoted as free, the conditions for fund set up required investors to pay $200 upfront – 20% of the annual administration fee – to be eligible for ‘free’ fund set up.
ASIC was also concerned that fund set up using a corporate trustee was not free under any circumstance.