ASIC looks into super performance disclosure

The corporate watchdog is considering making a public statement about its monitoring of websites and other disclosures in relation to superannuation fund performance following the Your Future, Your Super performance test.

The former chair of the House of Representatives Standing Committee on Economics, Tim Wilson, asked the Australian Securities and Investments Commission (ASIC) a question on notice regarding whether it had investigated how long Industry Super Australia’s (ISA’s) had knowledge of LUCRF or Maritime Super’s underperformance.

“Has ASIC investigated whether Industry Super Australia has engaged in misleading or deceptive conduct in claiming their funds deliver ‘superior returns’ while some funds were underperforming? If not, why not?” Wilson asked.

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ASIC said it had not investigated ISA’s knowledge of LUCRF or Maritime Super’s performance.

“We are not clear about what claims of ‘superior returns’ the question refers to and whether such claims relate to specific funds. We are not currently investigating ISA’s promotional campaigns about any ‘superior returns claims’ and, on the basis of the information provided in the question, we do not intend to do so,” ASIC said.

“However, ASIC is continuing to monitor website and other disclosures in relation to performance of funds across the superannuation industry following the outcome of the Your Future, Your Super performance test.

“This includes claims about the quality of fund performance. We will consider making a public statement about this work at the appropriate time.”

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Seems to me that as long as the Directors can make switches before valuation changes, then no director has suffered and consumer detriment - therefore ASIC does not care - oops, consumers were mislead - who cares - is that about it?

Jassmyn, you might well be the only person in the Australian Media who just might see the problems with ASIC? Maybe.

Silly Mr Wilson, says ASIC, (& APRA).
Please stop asking probing questions about Industry Super and all their related ISA,ISH, ISwhatever, as we ASIC & APRA will NEVER DO ANYTHING TO HURT OUT BEST BUDDIES.
Cases all closed, move right along and never question Industry Super again.
REGULATORY CAPTURE CORRUPTION, ASIC & APRA complete bias to anything and everything Industry Super.

Outperformance 'just because you are an Industry Super Fund' is misleading and, quite simply, is just a lie. Advisers would be struck off for a statement like that, but ISA is above reproach. It's disgusting.

Perhaps ASIC and ISA are proof that Compulsory Superannuation is just to large to manage - the power afforded to those who manage other people money is just astonishing and clearly it seems ASIC is not capable regulating without being captured.

When ASIC appointed Australian Super as their preferred fund of choice for their employees at the same time Qantas was in bed with Australian Super offering an incentive of 20,000 frequent flyer points for anyone that joined up, it was definite all over for any scrutiny whatsoever of Industry Super.
Can you imaging ASIC investigating Australian Super over anything at all????
ASIC secretly paid 2 Griffith University academics to create an ethics paper submitted to FASEA into why financial advisers needed ethics education 101 !!!
The bias and mismanagement of balance from the regulator is nothing short of a disgrace.

And which fund would you pick as a default?

Another very good question posed by Tim Wilson.

How about claim of low fees? I've been doing a fee comparisons lately and many industry funds cost over 1% a year. That seems pretty high to me.

That's before the fees charged by ISA?

Perhaps someone should point out to Tim Wilson that while both LURCF or Maritime Super might be industry super funds neither of them are members of "Industry Super Australia".

All in this together?

Someone should point out that both LUCRF and Maritime Super were members of "Industry Super Australia" until they failed the performance test...

LUCRF....the Labour Union Co-Operative Retirement Fund. Surely they would not have been allowed to operate above the law. We can all appreciate why statements like $1.50 per week, and performance figures that are out of date by 3 years and selected by themselves, have allowed to continue. One rule for them one rule for every other business in Australia.

There is no end to the corruption of ASIC, APRA and ISFs. How about the opaque valuation methods used to value the fixed assets of the fund. Always valued to show alleged outperformance. Not marked to market. Corrupt in the extreme and you ASIC preside over this. LNP do nothing, clueless Jane Hume does nothing.

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