Property spruikers lurk in popular holiday spot, investors risk $16k penalty

The spruikers are promoting illegal use of self-managed super funds (SMSFs) for the purpose of investment, including in property.

“These spruikers are not licensed to provide financial advice. They are targeting local consumers by setting up outside shopping centres or approaching people directly on the street,” ASIC said in a public statement.

The onus is ultimately on the owners of the SMSF to be compliant in their investments, and ASIC is warning trusting the advice of unscrupulous operators could see consumers in hot water with regulators such as the ATO.

“Setting up and running an SMSF is a complex and costly process, and consumers could end up losing a significant amount of money if they get it wrong. A breach of the ATO’s superannuation rules may result in the consumer facing hefty fines of up to $16,800,” ASIC said.

You can visit ASIC’s financial advisers register to see if your advice provider is authorised.