ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.
16-038MR ASIC guidance to employers about super
ASIC has updated its MoneySmart website to help employers select a default superannuation fund for employees.
'Super is a complex area, not just for individuals but for employers as well – and we know decisions that employers make can have a big impact on employees and their retirement savings,' ASIC Commissioner Greg Tanzer said.
'The new information on ASIC's MoneySmart website will assist employers to make some of these important decisions.'
The updated information encourages employers to consider a range of factors when deciding about a default super fund for employees, including fees, investment options offered, fund performance and insurance.
Commissioner Tanzer said ASIC also encourages employers to be very wary of trustees offering them inducements to pick their funds.
'Employers should not choose a default fund on the basis of an inducement. I strongly encourage employers who are concerned they may have been offered an inducement that is illegal to contact ASIC,' Commissioner Tanzer said.
The updates follow a review of some retail and industry super trustees to assess their compliance with s68A of the Superannuation Industry (Supervision) Act 1993.
ASIC will continue to monitor the area of employer inducements and may consider undertaking shadow shopping exercises to gain a better understanding of the employer experience when dealing with superannuation trustees and their associated businesses.
'Where we find evidence illegal inducements have been offered, ASIC will not hesitate to take action,' Commissioner Tanzer said.
Visit ASIC's MoneySmart website to read the new guidance on Super for employers
If employees do not select their own super fund, an employer needs to select a default super fund for them. This default fund must be a complying superannuation fund, and a fund authorised by APRA to offer a MySuper product.
In some instances, employers may be offered inducements to select a particular default super fund for their employees. Inducements may cover a range of things including corporate hospitality and tickets to sporting events, or discounts on products or services. Many of these inducements are prohibited under s68A of the Superannuation Industry (Supervision) Act 1993.
Under this provision, that is administered by ASIC, the offering by a trustee or their associate of certain types of inducements to employers to join employees to a fund is illegal and may give rise to civil action by a victim who suffers loss or damage as a result of the conduct. The section provides a victim with an ability to take action where a trustee or an associate offers to supply goods or services to a person on condition that one or more employees of the person will be, or will apply or agree to be, members of the fund.