A company has paid a $10,800 infringement notice penalty after making potentially misleading statements about ‘free’ SMSF set ups.
ASIC announced that LT Management Pty Limited has paid an infringement notice penalty in connection with potentially misleading statements about the cost of setting up an SMSF using the services of RS Capital Partners Pty Limited, which traded as My SMSF Property.
“ASIC’s concerns related to representations made by LT Management on the website www.silverhall.com.au (Silverhall) 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.
According to ASIC these conditions included buying a property directly through Silverhall and using RS Capital for accounting services for two years, at the cost of $2,200.
“Accuracy in advertising is integral to maintaining consumer trust and confidence in the SMSF sector,” said ASIC Deputy Chairman Peter Kell.
“Such conditions should be clearly stated so that consumers can make an informed decision. ASIC will continue to take action where we see advertising that might mislead consumers.”
ASIC acknowledges that LT Management “immediately took steps to correct its advertising and is developing improved processes for updates to the content of the Silverhall website”. ASIC also notes that the payment of an infringement notice is not an admission of a contravention of the Australian Securities and Investment Commission Act 2001.