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Retirement

Is your super fund in hot water?

  • May 10 2019
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Retirement

Is your super fund in hot water?

By Cameron Micallef
May 10 2019

One of Australia’s largest superannuation funds has copped a penalty for alleged misleading claims about its advice services.

ASIC

Is your super fund in hot water?

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  • May 10 2019
  • Share

One of Australia’s largest superannuation funds has copped a penalty for alleged misleading claims about its advice services.

ASIC

The corporate regulator found that HostPlus made misleading claims about offering “independent advice” in a recorded telephone message.

From July 2016 to late March 2018, the recorded telephone message referred to a free consultation available to members with an Industry Fund Service Limited (IFS) licensed financial planner. It then referred to the advice as “independent”.

ASIC was concerned that HostPlus and IFS were not independent of each other because HostPlus employees were appointed to provide financial advice under IFS’ Australian Financial Services Licence.

Further, HostPlus paid service fees to IFS for adviser services and, at the relevant time, HostPlus was a shareholder of IFS’ “ultimate holding company”, ASIC said.

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In response to ASIC’s concerns, HostPlus immediately removed the use of the word “independent” from its recorded telephone message.

What is independent advice?

Financial advisers are required to operate under an Australian Financial Services Licence.

Only financial advisers who operate under a licence that they own qualify as independent.

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Is your super fund in hot water?
ASIC
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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