ASIC has handed down a $21,000 penalty to self-licensed firm Financial Choice for false and misleading representations.
ifa understands Russell Medcraft, founder and chief executive of Financial Choice, is a close relative of ASIC chairman Greg Medcraft.
The infringement notice penalties, totalling $21,600, relate to emails the company sent to around 215,000 consumers in 2016 which “falsely stated” that Financial Choice had been asked to conduct a survey on behalf of their super fund, according to ASIC.
ASIC also found misrepresentations relating to Mr Medcraft’s website findmysuper.com.au, which the regulator believes also misled consumers into believing they required Financial Choice’s services to find their missing super and maintain contact with their super fund “while overseas”.
As a result of ASIC’s concerns, Financial Choice has agreed to “stop sending communications that state or imply that Financial Choice is seeking consumers’ opinions because superannuation funds have asked it to do so; and removed the misleading statements from the Find My Super website” according to ASIC.
In March Spring Financial Group announced it will acquire Financial Choice in a deal that would bring its funds under advice to $850 million.
Mr Medcraft will take an executive position with Spring FG post-acquisition.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 14 Dec 2018ASIC clarifies RG 146 requirements for advisersBy Adrian Flores
- 14 Dec 2018Sargon Capital acquires listed robo adviserBy James Mitchell
- 14 Dec 2018Industry body flags CPD burden under FASEA proposalBy Adrian Flores
- 14 Dec 2018Adviser exodus creating ‘enormous opportunity’ for accountantsBy Jotham Lian
- 14 Dec 2018Advisers embracing ESG investing, says surveyBy Adrian Flores
- 13 Dec 2018AFA picks apart CPD policy from FASEABy Adrian Flores
- view all