ASIC wins Edplan case against First Capital
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from Sydney-based First Capital Financial Planning over super switching advice it gave to Edplan clients.
The undertaking, made by consensual order of the NSW Supreme Court, directs First Capital to reimburse up to 170 clients of its Edplan business, which specialises in financial advice to NSW Government teachers.
First Capital has also undertaken to write to affected Edplan clients correcting “misleading and deceptive” information they were given in Statements of Advice between December 2004 and September 2005 to switch to a super fund it recommended.
ASIC brought the case against Edplan to court in December 2005 on the basis that the fees payable in the recommended fund were significantly higher than the fees payable in the clients’ existing state government superannuation fund, First State Super.
Under the enforceable undertaking, First Capital will reimburse any client that decides to return to First State Super but is worse off than if they had remained with First State Super.
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