ASIC reviewing industry fund advertisements

The Australian Securities and Investments Commission (ASIC) has confirmed to a Parliamentary Committee that it is closely reviewing the latest advertising campaign being underwritten by industry superannuation funds .

ASIC Commissioner Greg Tanzer confirmed ASIC's interest in the advertisements during questioning from the chairman of the Parliamentary Joint Committee on Corporations and Financial Services, South Australian Liberal Senator, David Fawcett.

Fawcett had asked whether the regulator was taking action or planning to take action over the advertisements, and expressed concern that they might prove confusing for even those who were well informed.

Fawcett suggested this was the case because the advertisements utilised an average of industry fund performance when it was often the case that individual retail funds had outperformed individual industry funds.

Speaking to Money Management after the committee hearings, Senator Fawcett said he was concerned to ensure there was greater clarity for consumers around the claims contained within the advertisements and to ensure that people were not misled.

He said he believed it was important that people understood the basis upon which they were making decisions with respect to the relative performance of funds.