LT Management has paid a $10,800 infringement notice penalty imposed by the Australian Securities and Investments Commission (ASIC) after making potentially misleading statements about the cost of setting up an SMSF using the services of RS Capital Partners, trading as My SMSF Property.
ASIC’s concerns related to the representations made by LT Management on the website silverhall.com.au between August 2015 and March 2016.
The representations made were that establishing an 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 was 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,” Kell said.
“ASIC will continue to take action where we see advertising that might mislead consumers.”
ASIC acknowledges LT Management took steps to correct its advertising immediately and was 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.