In respons to questions on notice from the parliamentary joint committee on corporations and financial services, ASIC said it had expressed concerns to Industry Super Australia that modelling used to illustrate the alleged consequences of early super withdrawal did not comply with ASIC’s trustee communication principles around the government’s early release scheme.
“Contrary to the ASIC principles, the ISA modelling did not use the same assumptions as the generic calculator on the ISA website,” the regulator said.
ASIC said ISA had reviewed its modelling in response to the regulator’s concerns and would make changes to the assumptions used.
“ASIC is reviewing ISA’s changes and will then consider its next steps,” the regulator said.
The regulator said it had not previously publicised action taken against ISA in this respect as the discussions could be characterised as “preliminary inquiries” and it was not the regulator’s usual practice to do so at this stage of an investigation.
ASIC said while ISA’s actions did not comply with ASIC’s principles as stated in the frequently asked question document ‘How should trustees communicate the potential long-term impacts of the COVID-19 early release of superannuation scheme on retirement balances?’, the principles did not “have the force of law” and thus the actions did not qualify as misleading.
It may not have had “the force of law” but was the information provided in the members best interests and was it ethical…degrees required for everyone…quick….call all the Uni’s…..
Talking about the SGC at 9.5% and not 12%
“A 30-year-old with a balance of $30,000 on average wages were already going to lose about $100,000 from their nest egg from that delay. If there would be further delays or freezes, they would be on top of that loss.”
ISA chief executive Bernie Dean SMH 14-5-2020.
Are they still at it?
Commissioner Press will be leading the wrist slapping ceremony no doubt.
every adviser should just start working for industry super get paid well have absolutly no concerns at all about acting in the client best interest or needing to do any type of comparisons research reasoning and then we will all be happy, except the consumer of corse when market disruptions like what is happening now occurs and they lose big time, but that is not the fault of lack of disclosure or placing clients in funds that do not align with their risk profiles, do what you want over there sounds great
If it is that good, why aren’t you doing it?
…because we all (well, most of us) actually care about our clients?
Token slap on the wrist, they’d never hurt their favourite pet.
A Mum & Dad business got shut down from ASIC – IMMEDIATELY – for something far less impactful than this (was similar advertising with showing returns).
This is why you need to get out as an independent adviser… Anyone sticking around is going to be in for a world of hurt and if you think once the FASEA changes are done it’s all over you’re lying to yourself. The next steps once insurance comms are wiped is to remove nearly all reasons for withdrawing an advice fee from Superannuation. Good luck charging the needed $5,000 to write and implement your plans from someone out of pocket.
Honestly if you’re a self respecting human you wouldn’t do this to yourself.
Out of interest, who was this?
Sorry I didn’t know them on any level outside of the asic release quite some time ago, but I do recall seeing the video on their website which was referenced before it was shutdown on the same day. I looked it up at the time and it was husband and wife running it and they obviously were unable to fight ASIC about it. It was a very tame video that showed the result of their investments performance. I would never be brave enough to do it myself though!
Where does it say they are taking action? ASIC has told ISA that the they have only broken principles and not the law so they will not take action. Where did you get your headline?