Yesterday, ifa reported that ASIC commenced civil penalty proceedings against Westpac Securities Administration Limited and BT Funds Management Limited.
ASIC alleges that WSAL and BTFM provided personal financial product advice to customers, specifically recommending they move their other super funds into their Westpac related super accounts, which is not permitted under their AFSLs.
Shortly after ASIC’s announcement, BT announced that it will oppose the action ASIC has brought against it.
“BTFG conducts superannuation campaigns with the purpose of assisting its customers to consolidate their superannuation accounts. These campaigns involve existing customers contacting BTFG to request more information in relation to their decision to consolidate,” said BTFG chief executive Brad Cooper.
“We reject ASIC’s legal interpretation that some customers may have thought they were receiving personal, rather than general advice.”
He continued, “In each of the 15 conversations ASIC is using as the base of its case, our customers were given a ‘general advice warning’ as is standard and a required part of our process.”
“We take our obligations to provide compliant general advice to customers very seriously. These customer interactions have all been conducted in accordance with the spirit and requirements of the law and have provided real benefits to our customers.”
BT noted that even the Australian Tax Office publishes on its own website information encouraging those with multiple super accounts to consider consolidating into one preferred account.
I suggest that your moderator cease publishing comments from those who remain anonymous. Trolls can go find another cesspit to play in… This forum is for adults.
Phil, I think it’s out of line for you to refer to ifa as a cesspit…that’s not an adult contribution.
The concept of general advice should be outlawed immediately. Big institutions ( both banks and industry super funds ) should not be allowed to hide behind disclaimers. The simple fact is that moving super from one super fund to another should either be self directed or advised. There is no in between.
BT will win the case I am sure. What constitutes ‘recommending’ the move will be a key point.
Whilst I don’t agree with what BT has done, I think that in their defence they could claim the precedent of union funds being allowed to use marketing campaigns to provide superannuation switching advice. The union funds have been doing it for years, seemingly with ASIC immunity. Why is ASIC targeting BT for this now, when they have let the union funds get away with it for so long?
Totally agree – level playing field is needed. ASIC would need to do the same with every ISA/Union fund if this case is to have any legal standing. They are openly biased and hypocritical.
RG 244 is pretty clear… you can’t just slap a general advice warning on to make it general advice, if it is personal advice… it is personal advice.
100% if they were making a recommendation, which if they were makes sense. Rolling into an existing fund and not providing underlying investment advice with warnings, is fine.
If need to compare, pay for advice.
Wonder if BT are still paying Rebates from clients superannuation accounts, directly Financial Advisers and the Executive Teams of Dealer Groups? Apparently that practice was OK, until FOFA legislated against it. Sales of Product and Providing Advice must be separated…
That was grandfathered so yes, on the grandfathered funds they are obliged to continue to do that.
Oooh …. vigorously ….
Adding to intelligent discussion at you level of IQ I see.