ASIC announced it has commenced the action in South Australia’s Federal Court, alleging Tidswell Financial Services and ZIB Financial Pty Limited (ZIB) “failed to do all things necessary to ensure the financial services covered by their respective Australian financial services licences were provided efficiently, honestly and fairly”.
They are also alleged to have failed to adequately monitor mobiSuper Pty Limited’s (mobiSuper) promotion of the MobiSuper Fund through a purported “general advice model” that had insufficient regard for the best interests of consumers.
ASIC will also argue in court that mobiSuper provided false and misleading statements about superannuation, insurance products and services online.
According to the regulator, mobiSuper made marketing telephone calls to consumers which relayed misleading claims about fee savings and equivalent insurance cover if consumers joined the fund and provided personal advice that was not in consumers’ best interests.
ASIC has expressed its concern about the potential harm to consumers if professional superannuation trustees fail to adequately monitor the activities of their promoters, and is seeking civil penalties against the licensee and superannuation trustee, the promoter, mobiSuper’s licensee ZIB, and the director of mobi and ZIB, Andrew Grover.
It said trustees have responsibilities in relation to the actions of their promoters.
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