Property firm penalised for SMSF advertising
A property advisory firm has paid a $10,800 infringement notice penalty after making potentially misleading statements about the cost of setting up a SMSF fund.
In a public statement, ASIC said LT Management Pty Limited (LT Management) potentially made misleading statements about the cost of setting up an SMSF using the services of Capital Partners Pty Limited (RS Capital), trading as My SMSF Property.
ASIC’s concerns related to representations by LT Management on the website www.silverhall.com.au between August 2015 and March 2016.
“The representations were that establishing a SMSF was free, when conditions applied to the 'free' set-up that were not clearly disclosed on the website,” said ASIC in the statement.
“The conditions for 'free' SMSF set-up included buying a property directly through Silverhall and using the accounting services of RS Capital for 24 months at a cost of $2200.”
ASIC deputy chairman Peter Kell said accuracy in advertising is integral to maintaining consumer trust and confidence in the SMSF sector.
“Such conditions should be clearly stated so that consumers can make an informed decision,” said Mr Kell.
“ASIC will continue to take action where we see advertising that might mislead consumers.”
ASIC acknowledged that LT Management immediately took steps to correct its advertising and is developing improved process for updates to the content of the Silverhall website.
It also noted that the payment of the infringement notice is not an admission of a contravention of the Australian Securities and Investment Commission Act 2001 consumer protection provisions.