Your Super Accountant penalised for 'free’ SMSF set up ad

Your Super Accountant has paid a $2040 infringement notice penalty in relation to potentially misleading statements about the cost of setting a self-managed superannuation fund (SMSF) using its services. 

The Australian Securities and Investments Commission (ASIC) raised concerns about the statements that appeared on the Your Super Accountant website in January of this year. 

ASIC said “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.” 

ASIC Deputy Chairman Peter Kell said, “Some terms and phrases - such as 'free’ - have such a strong connotation for consumers that particular care should be taken so that investors are not misled. 

“Setting up an SMSF is an extremely important financial decision and consumers should clearly understand the set up costs involved. 

“ASIC has a particular focus on misleading claims that a financial product or service is “free”, as this may lead consumers to make inappropriate financial decisions,’ Mr Kell said. 

Your Super Accountant has taken steps to correct its website.