An Australian financial services provider has paid two ASIC infringement notice penalties after an ASIC investigation found the firm had made misleading representations in relation to superannuation.
Financial Choice Pty Ltd, an Australian financial services provider has paid two ASIC infringement notice penalties totalling $21,600 after ASIC found that the firm had made misleading representations in emails sent to consumers and on its website.
In a public statement, ASIC said that the first infringement notice related to a representation made by Financial Choice in bulk emails the company sent to around 215,000 consumers in 2016.
“The emails falsely stated that Financial Choice had been asked by the consumer’s superannuation fund to conduct a survey about their superannuation,” said ASIC.
“The second infringement notice related to misleading representations on the website findmysuper.com.au, which is operated by Financial Choice.”
ASIC said it considered those representations would lead consumers to believe that they needed to use Financial Choice’s services to find their lost superannuation for free and maintain contact with their superannuation fund while overseas.
“The representations were false and misleading given the other ways consumers can search for lost superannuation, including the free service offered by the Australian Taxation Office, and maintain contact with their superannuation fund,” said the corporate regulator.
As a result of ASIC’s concerns, Financial Choice has agreed to stop sending communications that state or imply that Financial Choice is seeking consumers’ opinions because superannuation funds have asked it to do so; and removed the misleading statements from the Find My Super website.
ASIC deputy chair Peter Kell said consumers can be heavily influenced by promotional materials published by financial services providers.
“For this reason, ASIC will continue to take action where we believe those materials are misleading. Firms must ensure their marketing materials and promotional statements are based on fact,” said Mr Kell.
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