POWERED BY MOMENTUM MEDIA
ASIC scrutinises industry funds advertising
The recent television advertising launched by industry funds comparing their returns against those of retail funds is being scrutinised by the Australian Securities and Investments Commission (ASIC).
The regulator confirmed to a Parliamentary Committee late last week that the advertising was being reviewed, in a move which appears to be consistent with ASIC’s recent closer monitoring of financial services advertising.
ASIC Commissioner Greg Tanzer confirmed ASIC’s interest in the advertisements during questioning from the chairman of the Parliamentary Joint Committee on Corporations and Financial Services, South Australian Liberal Senator, David Fawcett.
Fawcett had asked whether the regulator was taking action or planning to take action over the advertisements, and expressed concern that they might prove confusing for even those who were well informed.
Fawcett suggested this was the case because the advertisements utilised an average of industry fund performance when it was often the case that individual retail funds had outperformed individual industry funds.
Speaking after the committee hearings, Senator Fawcett said he was concerned to ensure there was greater clarity for consumers around the claims contained within the advertisements and to ensure that people were not misled.
He said he believed it was important that people understood the basis upon which they were making decisions with respect to the relative performance of funds.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
