Superannuation spruikers have been placed on the corporate regulator’s radar for their involvement with schemes promoting the illegal use of self-managed super funds.
In an online update, ASIC has warned the public that superannuation spruikers promoting the illegal use of SMSFs are operating in the Coffs Harbour area.
ASIC stated that these spruikers are not licensed to provide financial advice and are targeting local consumers by setting up outside shopping centres or approaching people directly on the street.
Their sales pitch invites consumers to roll over their super savings into an SMSF, then use those savings to pay off debts, buy a car, start a business or buy property, and do so without paying any upfront fees for the service, the corporate regulator said.
ASIC said that consumers should think carefully before choosing to set up an SMSF.
“Setting up and running an SMSF is a complex and costly process, and consumers could end up losing a significant amount of money if they get it wrong,” it warned.
“A breach of the ATO’s superannuation rules may result in the consumer facing hefty fines of up to $16,800.”
ASIC said that anyone considering an SMSF should get financial advice from a properly authorised financial adviser.
Stimulate new ideas. Stimulate new thinking. Top up your CPD points and hear from industry experts with ifa’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD hours. Explore the Knowledge Centre now.
The government has introduced legislation around the adviser disciplinary body into parliament. ...
Marc Bineham, former AFA national president, has launched new book, The Money Sandwich, aimed at helping over-50s better manage their money and retire...
Mayfair founder James Mawhinney has said a new venture he’s offering to investors is within the bounds of the law despite being hit with a 20-year ...