Equity Trustees fined over super promotion
Potentially misleading promotional information for the Good Super superannuation fund has landed Equity Trustees Limited and Como Financial Services with penalties of $20,400 each issued by the corporate regulator.
The Australian Securities and Investments Commission (ASIC) said that Equity Trustees was responsible for issuing the interests of the fund, while Como was the promoter of the fund and issued penalty notices to the companies over promotional material published on the Good Super website, which offered to locate a consumer's "lost super".
In the first infringement notice ASIC stated that Equity Trustees and Como Financial Services, between 25 February and 3 October 2014 breached the ASIC Act by making false or misleading representations on the Good Super website as to the performance characteristics and use of services offered by the Good Super fund.
In the second notice ASIC stated the two groups, during the same period, breached the ASIC Act by engaging in coduct "that is liable to mislead the public as to the nature, the characteristics and the suitability for the purpose of a financial service".
"Consumers were also asked to elect whether to transfer all or some of the superannuation accounts found at the time they applied to join Good Super," an ASIC statement said.
"However, the online search found not only ‘lost superannation', but in fact all superannuation accounts held by consumer, including active superannuation accounts."
ASIC was also concerned that consumers were not provided with relevant warning about the rollover of their super benefits from their existing account to Good Super including:
- Fees (including exit and withdrawal fees) may be associated with a rollover;
- Consumers should consider where future employer contributions will be paid; and
- That current insurance entitlements might be lost and consumers may not get the same type of cover in a new fund.
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