ISA accused of publishing “false and misleading” information

A recent briefing note by Industry Super Australia (ISA), in which it claimed that self-managed superannuation funds (SMSFs) returned 1.2 per cent less than industry funds, contains false and misleading information, chartered accountant Wayne Wanders has alleged.

Wanders said that ISA were “comparing apples with oranges” by comparing returns reported by Australian Prudential Regulation Authority (APRA) and industry funds to SMSFs, as they former are exclusive of member’s insurance premiums.

The analysis by ISA found that SMSFs with balances under $2 million were outperformed by both APRA-regulated and industry superannuation funds consistently in the five years to 2016.

Related News:

“It would take ISA less than five minutes of reading the Glossary attached to the Australian Taxation Office (ATO) publication on which this briefing note is based, to determine that the returns reported by the ATO in its analysis of SMSF performance are net of member’s insurance premiums,” he said.

“This is either an example of poor research and analysis by ISA, or a case of deliberate false and misleading reporting.”

Wanders warned that should ISA, or any of its members, include claims that industry funds outperform SMSFs in any of their advertising material, they would risk a serious formal complaint being made against them for misleading and deceptive advertising with the Australian Competition and Consumer Commission and the Advertising Standards Bureau.




Recommended for you

Author

Comments

Comments

yawn... I don't think industry super funds are going to be worried about 1 little old accountant selling a SMSF. Secondly, those consumer bodies he's referring to are toothless tigers and i'd be surprised if they even read his complaint. If anything I'd be worried for him as why would an accountant be so focused on performance. Industry super funds have been doing this for years and are experts are manipulating figures to derive a return best suited to their advertising. If they don't like there returns they stop valuing assets and move to a different time frame.

Good example of ISA twisting facts to get cheap headlines and to suit their sales pitch. Hope the Royal Commission give them a thorough enema and lobotomy in the most painful way.

Add new comment