LT Management Pty Limited (LT Management) has paid a $10,800 infringement notice penalty after making potentially misleading statements about the cost of setting up a self-managed superannuation fund (SMSF) using the services of RS Capital Partners Pty Limited (RS Capital), trading as My SMSF Property.
ASIC’s concerns related to representations made by LT Management on the website www.silverhall.com.au (Silverhall) between August 2015 and March 2016. The representations were that establishing a SMSF was free, when conditions applied to the 'free' set-up that were not clearly disclosed on the website.
The conditions for 'free' SMSF set-up included buying a property directly through Silverhall and using the accounting services of RS Capital for 24 months at a cost of $2200.
ASIC Deputy Chairman Peter Kell said, ‘Accuracy in advertising is integral to maintaining consumer trust and confidence in the SMSF sector. Such conditions should be clearly stated so that consumers can make an informed decision. ASIC will continue to take action where we see advertising that might mislead consumers.'
ASIC acknowledges LT Management immediately took steps to correct its advertising and is developing improved processes for updates to the content of the Silverhall website.
The payment of an infringement notice is not an admission of a contravention of the Australian Securities and Investment Commission Act 2001 consumer protection provisions. ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
RS Capital paid an infringement notice penalty after it also made potentially misleading statements on the My SMSF Property website about the cost of setting up an SMSF using RS Capital's services (refer: 16-266MR).