On Tuesday, the Federal Court found that superannuation trustee Diversa Trustees did not fail to act efficiently, honestly, and fairly or fail to take reasonable steps to ensure its representatives complied with financial services laws.
The regulator alleged that Diversa contravened the law by allowing Australian Super Finder, the Australian Dealer Group (ADG), and financial adviser Nizi Bhandari to sign consumers up to its YourChoice Super product between 13 March 2019 and 18 December 2020.
ASIC alleged Diversa and the OneVue Group, which provided many day-to-day functions for the YourChoice Super fund, knew or should have known that the Australian Super Finder business was engaging in concerning behaviour and was at risk of breaking the law.
OneVue allegedly paid approximately $7.5 million in commissions on behalf of Diversa.
“ASIC pursued this case as part of our focus on trustee oversight of advice, which, if not done properly, can enable inappropriate behaviour by service providers and others,” commented ASIC deputy chair Sarah Court.
“ASIC will continue to work with superannuation trustees emphasising the importance of risk management when dealing with third-party providers and others.”
The regulator indicated that it is carefully reviewing the judgment.
The regulator found that Mr Bhandari acted dishonestly while assisting consumers to find and consolidate their superannuation and obtain hardship payments.
ASIC found that, because of ADG and Mr Bhandari’s conduct, consumers paid financial advice fees and were potentially exposed to harm, including loss of insurance held through superannuation, extra fees, and ATO penalties.
Mr Bhandari is also facing criminal charges in the Magistrates’ Court of Victoria.
Yet another failed & extremely costly exercise by the regulator.
Their vitriol in pursuing these cases & their determination to see these through despite a high chance of failure represents a culture that is not appropriate.
Interesting…..did ASIC get something wrong????
Ah yes! The only person ASIC is not blaming for this is the local postman. Where does the responsibility stop. This needs to be articulated. Just shows ASIC are out of touch.