POWERED BY MOMENTUM MEDIA
Did advisers use super choice to protect trails?
The Australian Securities and Investments Commission (ASIC) has confirmed that it has investigated allegations that members of superannuation funds may have been misled about transitioning to MySuper products to protect adviser trailing commissions.
Answering questions on notice from the Parliamentary Joint Committee on Corporations and Financial Services, ASIC confirmed it had received allegations that superannuation fund members holding funds in default investment options had been misled into making an investment choice so that they would opt out of transitioning into MySuper.
“It is alleged that these communications failed to disclose that by making this investment choice the member would continue to pay trailing commissions to an adviser, as well as higher fees and insurance premiums relative to the MySuper option,” the ASIC answer said.
The regulator told the committee it was in the process of asking 18 superannuation fund trustees questions under notice relevant to the issue.
“We have asked questions including how many members moved to choice products, rather than into new MySuper options, as well as what disclosure and advice members received about the transition,” the ASIC answer said.
“We have asked for copies of disclosure documents such as accrued default amount notices as well,” it said.
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
