ASIC focuses on ad disclosure requirements for super trustees

ASIC has written to superannuation trustees reminding them about disclosure requirements associated with advertising for superannuation products.

The types of issues ASIC has seen in advertising that may lead to misleading or deceptive concerns include:

• the statements do not give a balanced message about the returns, benefits and risks associated with an interest in the fund
• the warnings, disclaimers and qualifications in relation to the fund are not disclosed in a balanced manner and are not given sufficient prominence
• the document does not give a realistic impression of the overall level of fees and costs that a consumer is likely to pay.

ASIC is also aware of superannuation trustees offering cash incentives to encourage members to consolidate their super money, or for new members to acquire an interest in the fund. While this is permitted, trustees need to ensure that their messages about their products and services remain balanced and that members are not distracted from making an informed financial decision.

ASIC encourages superannuation trustees to review their advertising and promotional material (including direct mailouts to members), and consider the guidance given in ASIC’s Regulatory Guide 234 Advertising financial products and advice services (including credit): Good practice guidance (RG 234).

The Australian Prudential Regulation Authority (APRA) has also written to Registrable Superannuation Entity (RSE) licensees reminding them of their ongoing obligation to meet the Outsourcing Standard, when outsourcing activities, for example, to fund promoters.