{"id":47082,"date":"2019-11-07T07:41:17","date_gmt":"2019-11-06T21:41:17","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=47082"},"modified":"2019-11-11T07:52:35","modified_gmt":"2019-11-10T21:52:35","slug":"asic-takes-action-against-super-trustee","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/11\/07\/asic-takes-action-against-super-trustee\/","title":{"rendered":"ASIC Takes Action Against Super Trustee"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">ASIC has commenced action in the Federal Court in South Australia focused on the promotion of the MobiSuper Fund, a division of the Tidswell Master Superannuation Plan (Fund).<\/span><\/p>\n<p><!--more--><\/p>\n<p class=\"p1\"><span class=\"s1\">The action is against:<\/span><\/p>\n<ul>\n<li class=\"p1\"><span class=\"s1\">Superannuation trustee and AFS licensee, Tidswell Financial Services Ltd<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Mobi\u2019s AFS licensee ZIB Financial Pty Limited<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">A director of Mobi and ZIB, <b>Andrew Richard Grover<\/b><\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">The regulator stated its concern about potential harm to consumers if professional superannuation trustees fail to adequately monitor the activities of their promoters. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cTrustees have responsibilities in relation to the actions of their promoters,\u201d ASIC stated in a release. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cASIC is concerned that Tidswell and ZIB failed to do all things necessary to ensure the financial services covered by their respective AFS licences were provided efficiently, honestly and fairly.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ASIC alleges the following: <\/span><\/p>\n<ul>\n<li class=\"p1\"><span class=\"s1\">That false and misleading statements were made about superannuation, insurance products and services<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">That both Tidswell and ZIB failed to adequately monitor Mobi\u2019s promotion of the Fund through a purported \u2018general advice model\u2019 that had insufficient regard for consumers\u2019 best interests <\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">That Mobi offered an obligation-free \u2018lost super\u2019 search to consumers through internet advertising campaigns with the primary objective to get consumers to join the Fund and roll their other super balances into Mobi-promoted products<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">In marketing telephone calls to consumers, Mobi customer service officers (CSOs) made misleading claims about fee savings and equivalent insurance cover if consumers joined the Fund and provided personal advice that was not in consumers\u2019 best interests<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">ASIC is seeking civil penalties against:<\/span><\/p>\n<ul>\n<li class=\"p1\"><span class=\"s1\">Tidswell and ZIB for advice given to consumers by Mobi CSOs in breach of the best interest obligations<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Mobi and Grover for the misleading internet advertising campaigns<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Mobi for the false and misleading claims made by CSOs during marketing calls<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">ASIC stated that it is also seeking various declarations, including under the Corporations Act that Tidswell and ZIB failed to comply with their obligations as AFS licensees and under the ASIC Act that Mobi engaged in (and Grover was knowingly concerned in) misleading conduct.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The regulator added that this action has been taken following consultation and collaboration with APRA, which also has responsibility for regulating Tidswell under the SIS Act. APRA has supported ASIC with its investigation and has provided ASIC with a delegation of certain functions and powers under the SIS Act in relation to Tidswell in order to achieve appropriate regulatory outcomes.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The proceeding will be listed for case management on a date to be determined by the Court.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ASIC has commenced action in the Federal Court in South Australia focused on the promotion of the MobiSuper Fund, a division of the Tidswell Master Superannuation Plan (Fund).<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,5622],"tags":[],"class_list":{"0":"post-47082","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-superannuation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/47082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=47082"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/47082\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=47082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=47082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=47082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}