Retirement
Super funds in firing line for fees for no service
Three super funds are facing Federal Court action due to their fee-charging practices, the corporate regulator has revealed.
Super funds in firing line for fees for no service
Three super funds are facing Federal Court action due to their fee-charging practices, the corporate regulator has revealed.
Just yesterday, ASIC reported that it had commenced civil penalty proceedings against StatePlus Super, BT Funds Management and Asgard Capital Management.
The case against StatePlus Super alleges that State Super Financial Services Australia Ltd had charged at least 36,592 members fees for financial advice that was promised but not provided.
The maximum civil penalty for the contraventions alleged against StatePlus is between $1.7 million and $2.1 million for each contravention of a fee for no service.
StatePlus has previously remediated more than $100 million to customers affected by the conduct that, in this instance, has landed them before court.
Asgard Capital Management is before court for reportedly charging adviser fees to 404 customers for financial advice that was not provided, while Asgard and BT Funds Management Ltd are jointly under fire for “making misleading representations in half-yearly or annual account statements regarding the charging of the adviser fees”.
According to the regulator, Asgard had charged customers $130,000 for financial advice even after requests were made for customers’ financial advisers to be removed from product accounts and after advice was ceased.
In relation to certain superannuation products and portfolio services, BT and Asgard as trustee and issuer, respectively, had removed an “adviser fee” line item from account statements, but an amount equal to that fee was added to the administration fee amount for affected customers.
The issues first came to light during the royal commission as case studies and came under investigation by ASIC’s Office of Enforcement.
In both cases, ASIC said it will be seeking declarations of wrongdoing and pecuniary penalties from the court.
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