Industry super fund fined

by |
ASIC has penalised an industry super fund for producing adverts which could mislead consumers.

Media Super Limited has paid a $10,200 penalty to comply with an ASIC infringement notice after producing potentially misleading advertisements.

Media Super, an industry super fund for print, media, entertainment and arts professionals, published the ads as a factsheet in September 2012.

The factsheet called ‘Self-managed super? You be the judge’, compared the costs and benefits of self-managed super funds with the Media Super fund.

It appeared on Media Super’s website and was sent to all fund members, of which according to Media Super there are more than 110,000.

ASIC was concerned the factsheet inaccurately represented the costs and benefits of the Media Super funds compared to self-managed super funds.

ASIC Commissioner Greg Tanzer said ASIC is serious about making sure investors can be confident and informed.
“That means cracking down on misleading or inaccurate advertising.”

Media Super acted quickly to remove the statements from its website once approached by ASIC, and had fully cooperated in responding to ASIC's concerns, Tanzer said.

ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

The payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions.
  • Innocent Observer on 7/01/2014 3:28:37 PM

    What @Tash said.

    $10,200 well spent by the propaganda machine*.

    Well played Media Super, well played....

    *Correction: their member's funds. Maybe they should be required to write to each of their members explaining why they spent their money on peddling lies?

  • Tash on 6/01/2014 1:46:54 PM

    And they weren't required to inform the 110,000 members that they had received bad info? The other funds will be writing $10,000 cheques and sending anything they like to members, as long as they then withdraw it from the website! ASIC should also have a look at CBUS website and their SMSF commentary. That said, there are plenty of SMSF proponents selling it as a solution for all super ills. ASIC needs to get serious on financial literacy and misinformation.

  • Alistair on 6/01/2014 1:27:05 PM

    Finally a new dawn...well perhaps. ASIC needs to wake up from their slumber and hey it looks like maybe it is. These jokers in the ISN have been getting away with misrepresentation for far too long. It might have been okay under the previous pack of clowns in Labor but with this new dawn, finally government via its regulator is regulating.
    Now about Trustees of these funds. Lets hold them to account under Corporation Law and hold them to account on a personal level just like all entities that have a responsibility to investors.
    ISN funds like for example MEAT Industry Super and oh yeah MTAA. That way their members aren't done over like a Turkey at Christmas for the pathetic distortion of fact when it comes to the investors funds.
    Disclosure for the ISN is about time. After all can you run such is their enterprise for $1-$2 per week per member.....along with the buildings and staff.....
    Lets hope the ISN get what deserve. Massive levels of disclosure and the bliss of investors waking up to these clowns. Hit them where it hurts folks in adviser land. Give clients facts and let them decide. Its their money.
    Then lets "compare the pair"

  • Kevin on 6/01/2014 1:26:39 PM

    What a joke $10,200 is a pitiful fine!

  • Martin B on 6/01/2014 1:23:13 PM

    Some the unlisted investments designed to "provide employment to union members" have always worried me. I am not sure the investment strategy is always in the best interests of their investors.

  • Mark Thompson on 6/01/2014 1:11:43 PM

    Any industry fund with over exposure to illiquid assets like unlisted investments must be hurting from large member accounts rolling into SMSFs.

  • Mel on 6/01/2014 1:06:51 PM

    Finally !!!!! Now how about "compare the pair"?

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions