On 26 August 2022, the Federal Court of Australia (the ‘‘Court’’) ordered ZIB Financial Pty Limited (“ZIB”) and its corporate authorised representative MobiSuper Pty Limited (“MobiSuper”) to pay combined penalties of $250,000 for breaching superannuation advice laws as a result of MobiSuper promoting the Tidswell Master Superannuation Plan, which is also known as the MobiSuper Fund (the ‘‘Fund’’)…


All in all, AFS licensees are held to ensure representatives are acting in a lawful and honest manner, particularly when providing personal advice, and therefore must have precautionary and supervisory mechanisms in place to ultimately protect consumers. A serious misleading representation as such of consumers and their best interests is a serious departure from reasonable standards of performance of advice. On this point, ASIC clarified that it would continue to work to ensure licensees comply with the law and correctly monitor their corporate authorised representatives to prevent poor promotional behaviour.

Lastly, it is worth mentioning that ASIC’s Deputy Chair, Sarah Court, noted that ‘it is essential that consumers, when choosing their super fund, are not misled, or given personal advice that is not in their best interests’.

To access the judgment, click here.

For more information, and any guidance or advice on any related matter, Cleveland & Co, your External in-house counsel, are here to help.

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