ASIC targets super funds that aren’t clear about investments

Aussies may need to review their superannuation investments as the Australian Securities and Investments Commission (ASIC) takes action against ethical super funds that have possibly engaged in misleading conduct.

This comes after one fund is said to have made misrepresentations on social media platforms like LinkedIn, Facebook, and Instagram, according to ASIC.

While some super funds report above board investments, members could be seeing their money invested in ‘unethical’ or environmentally risky assets like coal mining or tobacco. 

It’s also been noted that as at 30 June 2023, a super fund continued to make investments in assets that it claimed to have restricted a year prior.

Ethical investing? It pays to know your super

As superannuation providers compete against each other to bring in new members, they may promise that investments are not exposed to certain industries.

But clearly some remain committed to so-called contentious investments.

“When making these claims super funds must have evidence to back their claims and ensure they are not promising exclusions that they cannot guarantee,” says ASIC Deputy Chair, Sarah Court.

With three super funds being penalised by ASIC in its latest review, Aussies might want to get more involved with their super to ensure their retirement money is going to the right place - or at least one that agrees with their ethical views. 

So if you’re thinking about switching to an ethical super fund, it’s best to do your research to determine whether it’s the right move for you.

Want to learn more about super? Why not check out our superannuation guides hub and get planning for your future.