In a statement released today, ASIC announced that ISA will change its advertising campaign in response to the regulator’s voiced concerns.
“ASIC was concerned that consumers may be misled by the advertisements that ran from February to May this year,” said ASIC commissioner Greg Tanzer.
“We are pleased that ISA has worked cooperatively with ASIC and put forward a suitable proposal to address our concerns.”
ISA has agreed to “clarify the terms ‘Average Retail Super Fund’ and ‘Average Industry Super Fund’ by providing details about the samples used in the comparison, including the number of retail and industry funds in the samples, andinclude a voiceover clarifying that past performance is not a reliable indicator of future performance”, the statement said.
Undoubtedly there are thousands of financial planners qualified and working with good intent! BUT there are those, often working within member associations that practice misleading and deceptive conduct. How about the responsible industry leaders find out why many financial planners have digressed from their obligations and their breaches and bad practising remains unchallenged. A fact I know because I falsely believed we were protected and did not expect the fraud, dishonesty and negligent behaviour that ultimately followed.
” ….like to know how they spend millions of dollars on advertising and sponsoring sports teams, yet tell their members there are no fees. …..
bet that if a member said give me a free ticket to one of the matches sponsored by an Industry fund they would say no the super box is soley for the benefit for our execs and our union mates
ASIC hasn’t as usual touched on or even undertood some for the key issues. ISA clients don’t do better off in retirement because they have not been engaged in the process but rather lead by the noise to believe “all will be alright mate”. ISA should be compelled to strop treating their members as default mushrooms and highlight the importance of seeking paid advice.
No, they have already said the adds will continue!
I would also like to know how they spend millions of dollars on advertising and sponsoring sports teams, yet tell their members there are no fees. Where does that money come from, the members or some secret money tree?
Any chance of a larger announcement, so that those outside of the financial planning industry might benefit?
Once again ASIC impress us with the blistering speed with which they intervene. Next they will be warning the investment public about the potential bubble in tulip pricing…
Oops. And this will stop them from doing it again….?
You are kidding. To little and way too late.
This is pathetic
The standard TV ad disclaimer is too small and disappears too quickly for any person to read and understand.
When will Super funds as a whole get real and “voiceover” the recommendation to get professional financial advice on whether that particular product is appropriate for the viewer’s needs?
That way they show that they are in a market of comparable funds and supporting the industry of professional advisers (the hand that feeds them).
They may even gain some respect from the industry and become leaders in their field? Who knows…
Any amount of induviduals have landed in court, and worse, lost their license for deceptive and misleading conduct, and rightly so. How is it that the industry funds have got away with a mere wrist slap?
Now all we need is an admission from the Industry Funds as to how much is contributed to the Labour Party as a donation during election times
No wonder the penalty is so minor. ASIC have already admitted by default they focused their attention on retail funds and ignored the ISA network. Office holders at ASIC need to face more scrutiny about their conduct. An observer may believe they are in league with the ISA.
When you cause damage you should expect to pay compensation. A slap on the wrist is hardly an effective deterrent for misleading and deceptive conduct. Expect more of the same from these rogues.
Isn’t this the second time they have been asked to make changes due to potential to mislead clients?
Ads should be banned. Return periods too easily manipulated to suit the marketing spin and it is impossible to check the basis of performance comparisons between unitised and non unitised funds.
Finally !
But they really need to be publishing a withdrawal or clarification of these ads as well. Damage has been done, make them fix it!
Slapped on the wrist for misleading and deceptive conduct! I must try and get away with if it if you get off that lightly!
Fat Chance – more double standards.
If an IFA did this they would be in Silverwater jail! not even a fine for their mates at the socialist union of industry funds
Great. The damage has been done! I wonder how it takes 4 or 5 months for them to act on these misleading adds?
This has been a long time coming- given that some industry super funds have performed quite badly over the last couple of years it can really amount to false advertising don’t you think! It would have prevented a lot of clients from seeking better returns for their super from outside funds.