ASIC puts super industry on notice

ASIC has nearly doubled its superannuation team since the start of the year as it cracks down on rogue operators.

The Australian Securities & Investments Commission has nearly doubled its superannuation team since the start of the year and says the industry can expect it to be more active as it cracks down on rogue operators.

It comes as the regulator began legal action in the Federal Court against a super fund and its trustee, alleging the fund breached its best-interest obligations and made false and misleading claims to clients.

“As we are increasingly taking on the role of conduct regulator in superannuation, we’re looking across the sector and we’re looking at all parts of the industry,” ASIC commissioner Danielle Press told The Australian.

“ASIC will be more visible, we will be taking more court action, more surveillance action and other regulatory actions within the super space.”

The regulator’s superannuation team had a headcount of 18 at the start of the year but it has nearly doubled since then.

“Our super team on the surveillance side has increased and on the enforcement side we’ve allocated resources to ensure we can effectively become the conduct regulator and make sure the behaviours in this sector are meeting community expectations and complying with the law,” Ms Press said.

Her comments came as ASIC on Wednesday launched action in the Federal Court in South Australia against Tidswell Financial Services, a professional trustee, and MobiSuper Fund, which is a division of the Tidswell Master Superannuation Plan.

The regulator alleges Mobi, which has assets under management of $220m, offered an obligation-free “lost super’’ search to consumers through internet advertising campaigns with the primary objective of getting them to join the fund and roll their super balances into Mobi-promoted products.

It further alleges Mobi made misleading claims about fee savings and insurance cover if consumers joined the fund and provided personal advice, under the guise of general advice, that was not in consumers’ best interests.

Tidswell, as a professional trustee, had a fiduciary obligation it could not abrogate by outsourcing to MobiSuper, Ms Press said.

The regulator also launched action against Mobi’s financial services licensee, ZIB, and Andrew Grover, a director of Mobi and ZIB. It is seeking civil penalties as well as a number of declarations, including that Tidswell and ZIB failed to comply with their obligations as Australian Financial Services licensees and Mobi engaged in misleading conduct.