SMSF provider slapped with $10k fine
A self-managed super fund (SMSF) provider has paid a $10,200 infringement notice penalty for potentially misleading investors on the cost of setting up an SMSF using their administration services.
SuperHelp Australia (SuperHelp) was fined for an advertisement it ran in October 2013, which said fund and pension fund set-up was free, subject to conditions.
But the advertisement did not disclose the conditions.
The Australian Securities and Investments Commission (ASIC) was concerned that despite being advertised as free, the conditions for fund set up required investors to pay $475 up front — half the annual administration fee.
There were also limits on the number of members a fund could have and how many investments could be made.
"Setting up an SMSF is an extremely important financial decision and consumers have a right to expect that representations made about set-up costs reflect the actual costs they will incur," deputy chairman Peter Kell said.
"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."
The regulator was also concerned the pension fund setup was not free under any circumstances for investors under the age of 60.
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