ASIC has announced that a firm has paid a $10,800 infringement notice penalty in relation to potentially misleading ‘free SMSF set up’ claims.
R S Capital Partners Pty Ltd paid the penalty after ASIC raised concerns about representations made on the My SMSF Property website earlier in the year.
“The representations were that fund set up was free, however, conditions applied to the ‘free’ set up that were not clearly disclosed on the website,” said ASIC.
“ASIC was concerned that although advertised as ‘free’, conditions for fund set up included an accounting services fee of $1,100 per year for a minimum of two years.”
ASIC says that payment of an infringement notice is not an admission of contravention of the consumer protection provisions in the ASIC Act.
“ASIC acknowledges that RS Capital immediately took steps to correct its advertising and is developing improved processes for the sign-off of advertisements.”
“Accuracy in advertising is integral to maintaining consumer trust and confidence in the SMSF sector. ASIC will continue to take action where we see advertising that might mislead consumers,” said ASIC Deputy Chair Peter Kell.
ASIC has received, since 1 July 2013, 218 reports of misconduct relating to SMSFs and property.