ASIC guidance to employers about super

ASIC has updated its MoneySmart website to help employers select a default superannuation fund for employees.

‘Super is a complex area, not just for individuals but for employers as well – and we know decisions that employers make can have a big impact on employees and their retirement savings,’ ASIC Commissioner Greg Tanzer said.

‘The new information on ASIC’s MoneySmart website will assist employers to make some of these important decisions.’

The updated information encourages employers to consider a range of factors when deciding about a default super fund for employees, including fees, investment options offered, fund performance and insurance.

Commissioner Tanzer said ASIC also encourages employers to be very wary of trustees offering them inducements to pick their funds.

‘Employers should not choose a default fund on the basis of an inducement. I strongly encourage employers who are concerned they may have been offered an inducement that is illegal to contact ASIC,’ Commissioner Tanzer said.

The updates follow a review of some retail and industry super trustees to assess their compliance with s68A of the Superannuation Industry (Supervision) Act 1993.

ASIC will continue to monitor the area of employer inducements and may consider undertaking shadow shopping exercises to gain a better understanding of the employer experience when dealing with superannuation trustees and their associated businesses.

‘Where we find evidence illegal inducements have been offered, ASIC will not hesitate to take action,’ Commissioner Tanzer said.