FAILING ASGARD SUPER OPTION CLOSED DOWN

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News

www.fssuper.com.au

Volume 13 Issue 04 | 2021

ASIC sues Diversa

The regulator is taking Diversa Trustees to court over failing to maintain oversight of a now banned financial adviser.

Diversa is the trustee for $1 billion Future Super, Mason Stevens Super, ING Super and MAP Master Super - later known as OneSuper - among other funds.

ASIC has commenced civil proceedings against Diversa, alleging that between March 2019 and December 2020 it was aware that ASIC was investigating a business run by financial adviser Nizi Bhandari for contraventions of the law but did not take adequate action and continued to allow him to put clients into Diversa’s superannuation product.

This allegedly saw Diversa continuing to allow the payment of fees from the super fund to Bhandari.

Diversa outsourced day-to-day operations to OneVue during the period in question, according to ASIC’s filing, therefore the regulator wants OneVue held accountable for not providing proper oversight of Bhandari.

It is alleged he put clients in a Diversa product just to earn fees, when doing so was not in the client’s best interests.

ASIC alleges that the OneVue company group acted on behalf of Diversa and facilitated Bhandari putting clients into Diversa products via his company, The Australian Dealer Group.

The regulator also alleges that Diversa did not act efficiently, honestly, and fairly because it failed to provide proper oversight of the activities of OneVue nor take appropriate action regarding the activities of The Australian Dealer Group and Bhandari involving its superannuation fund. fs The numbers

7.9%

The average return for Asgard Employee Super members over the last seven years.

Failing Asgard super option closed down

Jamie Williamson

After failing the inaugural Your Future, Your Super performance test, Asgard Employee Super has been closed, with many members transferred to BT’s Retirement Wrap.

Under the changes, members who were invested in the MySuper Lifestage option are set to be transferred to an equivalent MySuper Lifestage option within BT Super.

Meanwhile, those who are currently invested in the fund’s Choice options – Asgard SMA Funds or Managed Profiles – will be transferred to the Asgard Superannuation Account (ASA).

However, for those who currently hold insurance being transferred to the ASA, they will also require a BT Super account in order to maintain the insurance cover they hold, documents state.

In effect, these members will go from paying for one account to paying for two.

“If we open a BT Super account for your insurance, BT Super fees and costs (including insurance fees) will also apply to your new BT Super account,” the document states.

According to Rainmaker analysis, both Asgard and BT currently offer the same level of standard cover at $285,000 for a 40-year-old white collar member. While Asgard members in this cohort are currently paying $32.85 per month for this cover, they will pay slightly less ($32.20) as a BT member.

While comparison for a blue-collar worker isn’t quite as simple due to varied occupation types, comparing members in the high-risk option suggests the same standard level of cover will cost an Asgard member significantly more once they join BT, rising from $52.55 per month to $78.25.

Commenting, Rainmaker executive director of research Alex Dunnin said that while the transition of members in the MySuper Lifestage option is straightforward, the fact that few super funds can accommodate model portfolios at this time makes the transfer of members to ASA “is arguably one of the most complex seen”. fs

Aussies confident about retirement spending: Study

Karren Vergara Amid the uncertainties of COVID-19, Australians are far more confident about their retirement than global counterparts, a new study shows.

Most retired Australians said that they would have retired at the same age even if they had known about the events of 2020 (81%), a stark difference with the global findings of 62%, the Schroders Global Investor Study 2021 reveals.

While those from different parts of the world were cautious about spending their retirement savings (58%), Australians are not as worried (47%).

Australians are also saving more towards their retirement than the mandated 10% that goes toward their superannuation; many are saving 15% of their income on average.

Overall, the global pandemic has spurred Aussies (68%) to focus on their finances. They prioritise paying off debts and their mortgage followed by purchasing a property.

As with previous years, Aussie’s investment expectations remain unrealistically high.

Australian investors are expecting total investment returns of 10.6% over the next five years, an increase from 8.9% last year but slightly lower than the global average of 11.3%.

Schroders Australia chief executive Sam Hallinan said: “For many, the pandemic has presented an opportunity to recalibrate their personal finances and focus on financial wellbeing and, due to decreased spending on non-essentials, investors around the world have been able to save according to plan or indeed exceed their targets for savings.”

In terms of post-pandemic priorities globally, property is the front runner, followed by luxury and leisure purchases. fs