ASIC urges consumers to guard superannuation from promoters flogging quick switches to precarious funds
The nation’s corporate cop is trying to arm consumers against high-pressure sales tactics intended to lure them into moving their life savings into knotty, high-risk investments.
The alert represents another push by the Australian Securities and Investments Commission to protect the country’s multi-trillion dollar superannuation pool from falling into the wrong hands.
ASIC said the end of another financial year was the trigger for many Australians to check how their super investments have performed, providing an opportune time for promoters to try and flog products claiming to deliver better returns.
These sorts of calls or the true motivations can often be difficult for the average investor to pick up on, according to ASIC deputy chair Sarah Court, who is spearheading the awareness campaign.
Based on ASIC’s reconnaissance, many of the calls don’t have the usual “hallmarks of a typical scam”, with many callers professing to have an investor’s best interests at heart, offering ways to track lost super or to help find a better-returning product.
“They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,” Ms Court said.
Asking questions about a salesperson’s connection to the fund to establish whether there is a commissioning arrangement was a good way to establish the caller’s motivations, she said.
Pressure to make a decision quickly, calls out of the blue and promises of unrealistic returns were among the red flags to keep in mind, according to ASIC.
“The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems,” the ASIC lieutenant said.
“If you are unsure or are feeling pressured, just hang up.”
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