subscribe to our newsletter sign up

SMSF spruikers lurk in popular holiday spot

Spruikers illegally pushing self-managed super funds have started to pop up on the mid-north coast of NSW, and the corporate regulator is warning investors to be on the lookout. 

The Australian Securities and Investments Commission has issued a warning to Coffs Harbour locals to be on the look out for fraud superannuation specialists who are promoting the set-up and illegal use of self-managed super funds.

According to ASIC, the spruikers are setting up shop outside of shopping centres and speaking to individuals on the street to convince victims to establish SMSFs through them.

The fraudsters are selling consumers on the fake promise of drawing on their newly set-up SMSF to pay off debts, purchases cars, start businesses or buy property.


They also claim consumers can do so without any upfront fees for service.

ASIC has taken the opportunity to recommend potential SMSF members to consider carefully whether establishing a self-managed fund is right for them, as well as speak to an authorised financial adviser before entering into an SMSF arrangement.

“Setting up and running an SMSF is a complex and costly process, and consumers could end up losing a significant amount of money if they get it wrong,” ASIC stated.

“A breach of the ATO’s superannuation rules may result in the consumer facing hefty fines of up to $16,800.”

The corporate regulator advises consumers look up their potential financial adviser on the ASIC Financial Advisor’s Register before committing as a customer in order to ensure the advice provider is professionally authorised.

SMSF spruikers lurk in popular holiday spot
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Michael Jenkins - Don't the ATO need and AFSL licence to do that. Also will the ATO performing a fact find and producing a statement of advice to those funds it it.......
Blair Campbell - HHG - I had a brief discussion with someone on Facebook recently.
They insisted that payment of income tax by individuals was 'voluntary'.
I told him that.......
Paul Cunningham - You mean "as the Sydney and Melbourne property markets charge towards their longest price correction" ....
Anonymous - Where does Core Logic get its information? In the early 1990's there was a 2-3 year price correction of up to 50% in Melbourne and Sydney in the.......