In a statement issued yesterday, ASIC announced it issued three infringement notices to SMSF firm Esuperfund Pty Ltd for “false or misleading online advertising”, resulting in a combined penalty of $30,600.
In advertising materials run online between 31 January and 8 May 2014, Esuperfund was found to have “inaccurately represented” the fees and costs associated with establishing SMSFs as well as misrepresenting the benefits “compared to retail and industry superannuation funds”.
In addition, SMSF admin provider Your Super Accountant has paid a $2,040 infringement notice penalty after also being found to have made “potentially misleading statements about the costs of setting up an SMSF”.
“The representations on the website homepage were that fund set up was free. The website homepage did not disclose any conditions,” said a statement from ASIC.
“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 chair Peter Kell reiterated in the statements that establishing an SMSF is an “important financial decision” and that the corporate regulator is targeting so-called free SMSF providers for potentially misleading representations to consumers.
