In an online update, ASIC has warned the public that superannuation spruikers promoting the illegal use of SMSFs are operating in the Coffs Harbour area.
ASIC stated that these spruikers are not licensed to provide financial advice and are targeting local consumers by setting up outside shopping centres or approaching people directly on the street.
Their sales pitch invites consumers to roll over their super savings into an SMSF, then use those savings to pay off debts, buy a car, start a business, or buy property and do so without paying any upfront fees for the service, the corporate regulator said.
ASIC said that consumers should think carefully before choosing to set up an SMSF.
“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,” it warned.
“A breach of the ATO’s superannuation rules may result in the consumer facing hefty fines of up to $16,800.”
ASIC said that anyone considering an SMSF should get financial advice from a properly authorised financial adviser.
So ASIC are aware of the guy, how about naming, shaming, laying charges…..
If this article is correct then this should be treated as a criminal act and the promoters should be seriously fined and jailed.
This damages the SMSF and Super industry as a whole – not to mention further destroy consumers views of this industry.
Enough is enough – grow some kahunni’s mr regulator and start prosecuting and enforcing your mandate !! The RC has given you the tools and ability to do your job – all hard working reputable advisers and accountants want this as do the unsuspecting public that also want this.
It’s just not Coffs Harbour, must be unlucky in that someone important from ASIC was on holidays when they were asked.
Actually the fine can be alot higher – breach of sole purpose test, financial benefits, lending to related parties of the fund, non-arms length transaction etc – over $30K in ATO penalties PER TRUSTEE.