Industry funds ASIC infringements just $25,000

Only two industry superannuation funds have been the subject of Australian Securities and Investments Commission (ASIC) infringement notices over the past five years with the total combined penalties amounting to less than $25,000.

Hostplus was this year issued with an infringement notice amounting to $12,600 over alleged misleading claims around “independent advice” while in 2013 Media Super paid $10,200 after it was found to have produced potentially misleading advertisements when comparing Media Super funds to self-managed superannuation funds.

Answering a question on notice from Senate Estimates, the Australian Securities and Investments Commission (ASIC) confirmed that Hostplus and Media Super were the only funds to have been dealt with and listed on the regulator’s Infringement Notice Register.

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The chair of the Senate Economics Committee, Tim Wilson had specifically asked the chair of ASIC, James Shipton the accumulated total of ASIC fines on industry superannuation funds.

As part of its answer, ASIC pointed out that infringement notices were not specifically enforceable by the regulator.

“An infringement notice is not the same as a fine because there is no requirement to pay the amount stated in the infringement notice and, if the relevant entity does not pay the infringement notice, ASIC cannot enforce the infringement notice,” it said.

“The consequence of not responding and paying the infringement notice amount is the prospect of court action in relation to the conduct the infringement notice was originally trying to address.”

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Given that ASIC uses AustralianSuper as their default fund, you wonder how the regulator can be unbiased at all.

Quite the opposite - quite astute. Going with a fund that has no bad reports is a sensible financial/investment approach. Why select a fund with a dubious reputation. Hope you are not advising.

They asked the question at least. Where else did it go? They are not looking, simple as that.

The current playing field is about as level as Mt Everest.
Whether it is an Industry Super Fund or a Retail Fund should not be of any consideration whatsoever.
They are both governed by exactly the same set of regulations and responsibilities......aren't they ??
The gross imbalance in regard to the Govt and regulators assessment of the Industry Super Fund practices over many years justifies an opinion of bias and protectionism.
Whilst it would be entirely understandable, but not acceptable under a Labor Govt because of the funding from Industry Super Funds to Trade Union and Labor entities, it is simply unbelievable the current Liberal Govt is not allowing a balanced position to be enforced on this most important matter.
And why is this occurring??.......because the Liberal Govt know that Labor is struggling to retain its grass roots support and they won the election convincingly and so the last thing they want to do is undermine and attack the Labor swinging voters many of whom would be members of the Industry Super Funds.
This is not about fairness, balance or unbiased assessment.
This is purely about politics, power and strategy to ensure the members within the Industry Super Funds that were disenchanted with Labor and may have voted Liberal in the last election, do not turn on them at the next one.
The Liberal Govt will hold off for as long as possible before allowing or enforcing ASIC to dig deep into the Industry Super Funds, because once they start, it will be a very long, drawn out and ugly process when the evidence is finally presented.

Come now the Coalition Government has been doing its utmost to get rid of industry funds to the benefit of retail funds. That's why the Coalition Government was so opposed to the Royal Commission because it would seem that Morrision and his Treasurer knew that there was something stank within some of the banks and financial institutions.
Wilson, of course, has his relative running a retail fund and so Wilson would have been very keen to find some dirt on the industry funds. But he did something stupid. He asked the question in a public forum without knowing the answer and now has done the opposite and shown the industry funds in a good light. Teach him to be a smart arse.

With the flow of super funds from retail funds to industry funds being of such a volume, the retail funds have to do more than rely on their government supporters to stem the tide. Lets hope they do and soon.

If Industry Funds were doing so well, they would have no problem opening up the Award system to more competition, even to other Industry Funds. Sound of crickets...

Interesting point on awards. Can you give more details re opening please?

Yep.. I smell a big, fat, hairy, dirty rat. They should be investigated including highlighting the inferior insurance benefits.

Yep.. I smell a big, fat, hairy, dirty rat.

surprise, surprise, surprise

ASICk Joke are corrupt from the inside out. This is the only logical conclusion for a supposed semi-Gov organisation whose culture is maliciously leprous, discriminating and rotten - what other possible reason could there be for the nauseating known issues including this.

Been reading the comic books again for the big words?

And ASIC staff are getting paid?

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