Published on September 20, 2016 7:30 am, by Pete Lalor
How well do you understand the fees and charges on your superannuation savings? Do you check what you are being charged or do you rely on your financial institution to get it right?
ASIC released a statement last week advising that ING Bank (Australia) Limited, will be compensating about 24,500 of their Living Super members approximately $5.38million because they may have been misled about the fees they were charged and the interest they received on cash investments.
ASIC believes that Living Super clients may have been misled by the way ING Bank promoted Living Super as having no fees for the cash investment option, no investment and administration fees for the balanced option and having low fee options without clearly stating that Living Super clients would receive a lower interest rate than that received by ING Savings Maximiser customers. Additionally promotional material did not say that the no fee and low fee features could be at risk if the investment manager changes from ING Bank.
ING will compensate all affected customers and change the way they promote the Living Super product. If you are an ING Living Super customer we suggest you check your investment options. If you fall into one of the categories that ASIC has mentioned and haven’t received any communication, we suggest you contact ING directly.
While ASIC’s focus on disclosure is reassuring, it’s also a timely reminder to clients to check the terms and conditions of their financial products and query everything they don’t understand.
MoneyBrilliant customers on the Plus Plan can link their superannuation accounts giving them detailed knowledge of their investment options, fees and charges.
Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.