A Financial planning company that specialised in providing financial advice to NSW Government teachers, First CapitalFinancial Planning Pty Ltd, has been found guilty in the NSW Supreme Court of providing super switching advice that was misleading or deceptive and did not have a reasonable basis.
The Australian Securities and Investments Commission(ASIC) said the court had been told First Capital, using the name , had between December 2004 and September 2005 advised 170 teachers to switch from their state government superannuation fund, , to a superannuation fund recommended by First Capital.
It was alleged that the fees payable in the recommended fund were significantly higher than the fees payable in First State Super.
The Supreme Court found the Statements of Advice given to the teachers were misleading and deceptive and did not disclose a reasonable basis for advice.
The Supreme Court ordered First Capital to write to all affected clients correcting the information they were given.
First Capital had already entered into an enforceable undertaking with ASIC that effectively requires the financial planning company to reimburse any client who decides to return to First State Super but finds themselves worse off.
