ASIC tightens rules on SMSF advertising descriptors
The Australian Securities and Investments Commission (ASIC) has closed off another avenue for property spruikers with respect to self-managed superannuation funds (SMSFs) placing limitations on SMSF-specific advertising descriptors.
ASIC deputy chairman, Peter Kell, clearly laid the ground-rules for future advertising around property and SMSFs by stating that the regulator has concerns about promotions suggesting that particularly categories of property are suited to investment through an SMSF.
"Whether or not property is suitable for purchase through an SMSF will depend on the investment strategy of the SMSF property and the circumstances of the purchase," he said.
Kell's comments came as ASIC moved to stop social media advertising by three firms - Urban Seed Project Marketing Pty Ltd, Skybridge Portfolios Pty Ltd and Tatnell DLS Pty Ltd.
The regulator said the firms had subsequently taken steps "to remove or amend potentially misleading representations about SMSFs in social media advertising.
The ASIC announcement had pointed to Urban Seed's YouTube videos being linked to a promotional website which included representations about "SMSF qualified" and "SMSF friendly" properties available for sale.
"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, whether that advertising is on social media or more traditional media," Kell said.
The ASIC announcement said Skybridge, Urban Seed and Tatnell had all removed the relevant posts and videos, had ensured future marketing on social media would undergo appropriate review and approvals processes, and had fully cooperated in responding to ASIC's concerns.
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