• subs-bellGet the latest news! Subscribe to the ifa bulletin

ASIC takes legal action on SMSF admin provider

The corporate regulator has taken legal action in the Federal Court of Australia seeking financial penalties and orders to prevent one company from advertising free SMSF set-up.

ASIC is looking to prevent Superannuation Warehouse Australia (SWA) – which provides online accounting and administration services for SMSFs – from advertising “free SMSF set-up” on two of its websites.

In a statement issued by ASIC, the regulator alleges that SWA “engaged in misleading or deceptive conduct” in relation to financial services.

ASIC also alleges that the company “made false or misleading representations” when it promoted the free set-up of SMSFs on the websites without clearly disclosing that conditions and charges were associated with the 'free' set-up service.

In addition to declarations, injunctions and financial penalties, ASIC is also seeking an order requiring SWA to implement a compliance program, post notices on its websites and notify customers who applied for the free SMSF set-up service about the proceeding.

The first hearing of the matter is listed for 8 May 2015.