Early release super schemes come under Government scrutiny

government retirement stronger super

16 July 2012
| By Staff |
image
image
expand image

Promoters of early release of superannuation benefits schemes are set to face tough penalties under proposed additions to the Government's Stronger Super reforms.

Such schemes are usually promoted as a way for individuals to access super benefits before being eligible to do so.

According to the Government, those promoting the illegal arrangements usually target non-English speaking individuals or those not fully aware of the rules around access to superannuation, the Government stated.

In the past, individuals or entities have encouraged members to rollover their superannuation, only to have the promoters take fees of up to 50 per cent, the Government stated.

In some cases, up to $8 million has been illegally released from a member's super balance, generating millions in commissions for promoters.

In others, promoters have used identify theft for criminal purposes, including stealing an entire superannuation balance, according to the Government statement.

"This measure is an important part of the Government's Stronger Super reforms and will provide penalties for those who promote schemes which undermine the Government's retirement policy", said Bill Shorten, Minister for Financial Services and Superannuation.

It is not yet understood how the penalties will operate, but legislation giving effect to this measure is underway and will commence on Royal Assent.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

4 days 7 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week 1 day ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks 1 day ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

1 week ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

6 days 13 hours ago