The Australian Securities and Investments Commission (ASIC) has moved against a superannuation fund on the basis of it using a general advice model.
The regulator announced today it had initiated Federal Court action against MobiSuper Fund, which is a division of the Tidswell Master Superannuation Plan.
It said the action was against:
The announcement said ASIC was concerned about potential harm to consumers if professional superannuation trustees failed to adequately monitor the activities of their promoters.
“ASIC is concerned that Tidswell and ZIB failed to do all things necessary to ensure the financial services covered by their respective AFS licences were provided efficiently, honestly and fairly,” it said.
“ASIC also alleges that both Tidswell and ZIB failed to adequately monitor Mobi’s promotion of the Fund through a purported ‘general advice model’ that had insufficient regard for consumers’ best interests,” the ASIC announcement said. “Further, ASIC alleges false and misleading statements were made about superannuation, insurance products and services.”
ASIC claims that Mobi offered an obligation-free ‘lost super’ search to consumers through internet advertising campaigns with the primary objective to get consumers to join the Fund and roll their other super balances into Mobi-promoted products.
ASIC further alleges that, in marketing telephone calls to consumers, Mobi customer service officers (CSOs) made misleading claims about fee savings and equivalent insurance cover if consumers joined the Fund and provided personal advice that was not in consumers’ best interests.
ASIC is seeking civil penalties against:
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.