POWERED BY MOMENTUM MEDIA
Proceedings against Squirrel Superannuation Services start for misleading marketing
The corporate regulator has commenced civil penalty proceedings in the Federal Court against financial technology firm Squirrel Superannuation Services for false or misleading representations.
The Australian Securities and Investments Commission (ASIC) alleged that the firm’s self-managed superannuation fund (SMSF) brochure from March 2015 and July 2018 made misleading representations.
ASIC said the brochure was called ‘How buying established residential property can super charge your superannuation?’ and that Squirrel provided the brochure to thousands of members of the public by email and distributed hard copies at a seminar on 28 April, 2015.
ASIC also alleged that from around January 2015 Squirrel marketed and sold services helping customers establish and operate SMSFs to purchase established residential property.
The misleading representations ASIC alleged in the brochure included:
- ‘… residential property in metropolitan locations doubles in value every seven to 10 years and generates a rental return of around 4-5% per annum’;
- Using a deposit from an SMSF to purchase residential investment property could obtain certain average returns;
- There is a ‘remarkable’ difference in returns between investing in a regular superannuation fund (7%) and using an SMSF that purchased residential property (14%); and
- The costs of managing an investment property through an SMSF are ‘surprisingly low’ compared with using a financial planner to select a series of managed investment funds.
ASIC said it was seeking declarations, pecuniary penalties and cost orders against Squirrel.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
