Firm penalised for misleading SMSF advertising

Firm penalised for misleading SMSF advertising

An AMP-linked financial planning firm paid $10,200 in penalties after ASIC issued an infringement notice for making false or misleading representations.

The firm, Australian Financial Planning Solutions Pty Ltd (AFPS), is an authorised representative of Charter Financial Planning Limited, an Australian financial services licensee and subsidiary of AMP Limited.

ASIC's concerns related to false or misleading representations made in an article titled "Benefits of a self-managed super fund" that appeared on AFPS's website between 22 July and 4 November 2014.

ASIC was concerned that the article contained misleading and unsubstantiated claims that major retail and industry superannuation funds will experience payout difficulties.

ASIC was also concerned that the article misrepresented the taxation implications of self-managed superannuation funds compared to major retail and industry superannuation funds, by giving the impression that certain tax benefits only apply to SMSFs, when they actually apply to most superannuation funds.

“Consumers should be able to trust the information provided by financial firms when making decisions about their investments, including superannuation. ASIC will continue to take enforcement action where AFS licensees provide misleading information,” said deputy chairman Peter Kell.

ASIC stated AFPS has removed the statements from its website following the corporate regulator’s concerns.

Firm penalised for misleading SMSF advertising
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