ASIC has issued Information Sheet 241 to remind superannuation trustees that using improper inducements to influence employers in their choice of default fund is illegal. The ASIC guidance draws attention to the recent amendments to s 68A of the SIS Act and illustrates how the employer kick-back prohibition applies to superannuation trustees in common scenarios.
Section 68A prohibits a trustee, or its associates, from using goods or services to influence employers to nominate a default superannuation fund for employees, or to encourage employees to choose or retain a particular superannuation fund. Civil penalties enforceable by ASIC apply for breaches of s 68A from 6 April 2019. This reflects a recommendation made by the Banking Royal Commission so that a breach can attract a civil penalty, in addition to a choice of fund penalty under the Super Guarantee legislation.