In an online update, ASIC has warned the public that superannuation spruikers promoting the illegal use of SMSFs are operating in the Coffs Harbour area.
ASIC stated that these spruikers are not licensed to provide financial advice and are targeting local consumers by setting up outside shopping centres or approaching people directly on the street.
Their sales pitch invites consumers to roll over their super savings into an SMSF, then use those savings to pay off debts, buy a car, start a business or buy property, and do so without paying any upfront fees for the service, the corporate regulator said.
ASIC said that consumers should think carefully before choosing to set up an SMSF.
“Setting up and running an SMSF is a complex and costly process, and consumers could end up losing a significant amount of money if they get it wrong,” it warned.
“A breach of the ATO’s superannuation rules may result in the consumer facing hefty fines of up to $16,800.”
ASIC said that anyone considering an SMSF should get financial advice from a properly authorised financial adviser.
A press release will help the people who have invested in an illegally run operation, ASIC at its best.
No ,continue ASIC as you normally do ie nothing . Let SMSF spruikers continue and let the real estate agents suggest SMSF for property etc . Do not at any BE PROACTIVE . We would hate you to actually go down their to investigate and catch these culprits . DO NOT EVER CHARGE THESE PEOPLE . Preferably an un enforcable undertaking , but send them a copy of the daft first . We can then have another royal commission in 10 years time .Good for lawyers , Pollys and ASIC to demand more money !!!
A bit of a wet lettuce approach.
With regulators focusing the majority of their resources on licensed advisers, it’s no surprise most of the consumer damage is now being done by SMSF spruikers, real estate agents, direct insurers, book writers, and accountants.
It also doesn’t help when indiscriminate vilification from people like “Wacka” Williams and Adele Ferguson is pushing consumers away from licensed advice, and making them susceptible to far more dubious options.
I see a lot of this too. People close to retirement being encouraged to buy property (not in Super) is high is going to compromise their Centrelink benefits unless they sel. The property to get rid of the debt. Agent doesn’t mind too much. They pocketed $20,000 -$25,000 commission….
How about targeting real estate agents who tell potential customers to buy the property in a SMSF? Doesn’t take a genius to see a couple in their 40s and quickly calculate how much they should have in super. I’m hearing more and more of it coming through my doors. Real estate agents need to have their head pulled in and stop trying to provide financial advice that they are ill-equipped to deliver.