Squirrel Super Ordered to Pay $55,000 Penalty for Misleading Marketing

The Federal Court has ordered Squirrel Superannuation Services Pty Ltd pay a $55,000 penalty for false and misleading marketing regarding investing in residential property via self-managed superannuation funds (SMSF).

The Court found Squirrel distributed a brochure conveying misleading representations about residential property investment returns at a seminar and via email on about 9,420 occasions, between March 2015 to January 2019. Squirrel was found to have engaged in conduct that was misleading and deceptive or likely to mislead or deceive.

ASIC issued two Infringement Notices to Squirrel regarding the same conduct in October 2018 which Squirrel failed to pay. ASIC then took the matter to the Federal Court in December 2020.

ASIC Deputy Chair Sarah Court said:"The SMSF sector holds an estimated total value of assets of just over $876 billion. Misleading information about SMSFs can greatly impact the sector so it is important that clear and accurate information is provided to those looking to set up an SMSF."

"ASIC issued two infringement notices about the Squirrel marketing material that were not paid. Entities should be aware that by not paying infringement notices, they risk higher penalties imposed by the Court,"concluded Ms Court.