ISA accused of publishing “false and misleading” information

1 March 2018
| By Hannah Wootton |
image
image
expand image

A recent briefing note by Industry Super Australia (ISA), in which it claimed that self-managed superannuation funds (SMSFs) returned 1.2 per cent less than industry funds, contains false and misleading information, chartered accountant Wayne Wanders has alleged.

Wanders said that ISA were “comparing apples with oranges” by comparing returns reported by Australian Prudential Regulation Authority (APRA) and industry funds to SMSFs, as they former are exclusive of member’s insurance premiums.

The analysis by ISA found that SMSFs with balances under $2 million were outperformed by both APRA-regulated and industry superannuation funds consistently in the five years to 2016.

“It would take ISA less than five minutes of reading the Glossary attached to the Australian Taxation Office (ATO) publication on which this briefing note is based, to determine that the returns reported by the ATO in its analysis of SMSF performance are net of member’s insurance premiums,” he said.

“This is either an example of poor research and analysis by ISA, or a case of deliberate false and misleading reporting.”

Wanders warned that should ISA, or any of its members, include claims that industry funds outperform SMSFs in any of their advertising material, they would risk a serious formal complaint being made against them for misleading and deceptive advertising with the Australian Competition and Consumer Commission and the Advertising Standards Bureau.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 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....

17 hours 53 minutes ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago