Regulators come down on early release of super
TheAustralian Securities and Investments Commission(ASIC), theAustralian Taxation Office(ATO) and theAustralian Prudential Regulation Authority(APRA) have successful obtained permanent injunctions against the proprietors of Super Release, a company offering to provide early release of superannuation benefits.
The injunctions against Timothy Barritt, Kelvin Mills and Carolyn Mills were all made by consent and without any admissions being made.
But the injunction prevents them from advertising or promoting the business Super Release or providing services to assist individuals to obtain early release of superannuation benefits.
It was alleged the proprietors of Super Release misled the trustees of a number of superannuation funds and induced the trustees to transfer member’s funds to superannuation funds which were under their control.
Further, on receipt of the superannuation benefits, a fee for their services was deducted before paying the balance to the fund members.
Both Carolyn Mills and Kelvin Mills were trustees of KOM Super Fund.
Access to the preserved benefit component of superannuation money is against the law unless fund members apply to APRA on the basis of compassionate grounds, or to the trustees of the fund in the case of financial hardship.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
