AUSTRALIA - The Brisbane Supreme Court has banned superannuation business Instep Super from operating and advertising because of misleading and deceptive conduct.
It was alleged that the company was advertising on television, radio and online, offering returns on investment in superannuation funds of between eight and 20%.
The advertisements also claimed Instep Super was 'the best performing superannuation fund in Australia'.
ASIC concluded that sole director, Leslie John Donnell, had arranged the advertisements and that neither he, nor Instep Super, was licensed to provide financial products or offer advice.
ASIC's investigation also concluded that neither Instep Super nor Donnell had any qualifications or experience in the superannuation industry and that the Product Disclosure Statement on the Instep Super website was in fact plagiarised from other reputable superannuation providers' websites.
ASIC's inquiries also determined that Instep Super did not receive superannuation funds from any member of the public.
Jan Redfern, executive director of enforcement, ASIC, said: "Consumers who are considering moving their superannuation should always check that their adviser or fund has an Australian financial services licence.
"In this case, ASIC was able to stop the conduct early, but if providers are not licensed and consumers are attracted to claims that can't be substantiated, there can be real losses. Fortunately, nobody acted on these advertisements."
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