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An accounting practice has paid an infringement notice penalty after making potentially misleading statements about the cost of setting up a self-managed superannuation fund.
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Firm fined over misleading statements
14 August 2014
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The firm, Your Super Accountant, was fined $2,040 after making representations on its website homepage that fund set up was free. According to ASIC, the website homepage did not disclose any conditions.
In a statement, ASIC said it was concerned that although promoted as free, the conditions for fund set up required investors to pay $200 upfront – 20 per cent of the annual administration fee – to be eligible for ‘free’ fund set up.
ASIC also said it was concerned that fund set up using a corporate trustee was not free under any circumstance.
Deputy chairman Peter Kell said the term "free" has such a strong connotation for consumers that particular care should be taken so that investors are not misled.
"Setting up an SMSF is an extremely important financial decision and consumers should clearly understand the set up costs involved".
"ASIC has a particular focus on misleading claims that a financial product or service is 'free', as this may lead consumers to make inappropriate financial decisions," Mr Kell said.
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ASIC acknowledges that Your Super Accountant has taken steps to correct its website.
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