POWERED BY MOMENTUM MEDIA
Did advisers use super choice to protect trails?
The Australian Securities and Investments Commission (ASIC) has confirmed that it has investigated allegations that members of superannuation funds may have been misled about transitioning to MySuper products to protect adviser trailing commissions.
Answering questions on notice from the Parliamentary Joint Committee on Corporations and Financial Services, ASIC confirmed it had received allegations that superannuation fund members holding funds in default investment options had been misled into making an investment choice so that they would opt out of transitioning into MySuper.
“It is alleged that these communications failed to disclose that by making this investment choice the member would continue to pay trailing commissions to an adviser, as well as higher fees and insurance premiums relative to the MySuper option,” the ASIC answer said.
The regulator told the committee it was in the process of asking 18 superannuation fund trustees questions under notice relevant to the issue.
“We have asked questions including how many members moved to choice products, rather than into new MySuper options, as well as what disclosure and advice members received about the transition,” the ASIC answer said.
“We have asked for copies of disclosure documents such as accrued default amount notices as well,” it said.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
