Super Under Siege: ASIC Flags Spike in Misconduct in Latest Annual Report

ASIC has reported a significant rise in misconduct exploiting superannuation savings, driven by economic pressures and opportunistic business models. The regulator has observed a surge in misleading advertising, aggressive sales tactics, and inappropriate financial advice, particularly in relation to SMSFs and property investment schemes.

These issues were highlighted in a recent Federal Court case[1] in which a financial services provider was fined over $11 million for breaching conflicted remuneration laws and giving inappropriate advice to clients in relation to their superannuation.

In response, ASIC is ramping up enforcement, issuing public warnings, and increasing scrutiny of advisers and trustees to better protect consumers and maintain the integrity of the superannuation system.

This article provides an overview of the key trends in superannuation-related misconduct, ASIC’s enforcement priorities, and practical steps for trustees, advisers, and consumers.

ASIC released its latest annual report on 8 October 2025, outlining its activities and regulatory focus from 1 July 2024 to 30 June 2025.[2] A key focus for ASIC over the past year has been tackling the exploitation of superannuation, including in respect of SMSFs. The report details a range of improper practices ASIC has targeted, as well as certain systemic issues which ASIC intends to address through ongoing regulatory action.

How superannuation is being exploited

• Misleading and high-pressure sales tactics: ASIC reports that scammers and some financial services businesses are using deceptive advertising and aggressive sales techniques to pressure individuals into transferring their superannuation into risky and complex investment schemes. These tactics often obscure the true nature of the products being promoted and exploit consumers’ lack of financial expertise.
• Unsuitable investment schemes: Consumers are being encouraged to transfer their superannuation from well performing funds into high risk or speculative investment schemes, often marketed with unrealistic promises. These products can result in substantial financial losses in short spans of time.
• Breaches of trustee duties: Some superannuation trustees are accused of failing in their duty to act in members' best financial interests, such as allowing members to invest in schemes with no track record or failing to conduct proper due diligence.
• Systemic failures in fund management: Some superannuation funds have been found to exhibit systemic governance issues, including failures to report member service investigations to ASIC. These investigations have involved matters such as incorrect insurance premium refunds, raising concerns about transparency and regulatory compliance within the sector.

ASIC's response to superannuation exploitation

• Consumer warning campaign: ASIC’s campaign, launched in June 2025, aims to educate Australians about the risks of high-pressure sales tactics and investment offers that promise unrealistic returns. The campaign encourages individuals to remain vigilant and seek independent financial advice before making changes to their superannuation.
• Increased enforcement and investigations: ASIC has significantly increased its enforcement efforts, doubling the number of new investigations related to financial advice and initiating legal proceedings against individuals and entities involved in misconduct.
• Targeting "unscrupulous" business models: ASIC is intensifying scrutiny of business models that rely on high-pressure sales tactics and lead generation services to channel superannuation funds into high risk investment products.
• Taking action against trustees: ASIC is also taking enforcement action against superannuation trustees who fail to uphold their gatekeeper responsibilities, with a particular focus on ensuring robust governance frameworks and thorough due diligence in the assessment of investment options.
• Prioritising cyber security: ASIC has flagged cyber-attacks and data breaches as critical risks and is actively investigating instances of inadequate cyber resilience across the financial services sector.

In April 2025, the Federal Court imposed an $11.03 million penalty on DOD Bookkeeping Pty Ltd (formerly Equiti Financial Services) following ASIC proceedings. The company was found to have breached conflicted remuneration laws and provided generic financial “cookie-cutter” advice that failed to consider clients’ individual circumstances. ASIC’s investigation revealed bonuses paid to advisers were linked to property purchases through a related entity, influencing advice and undermining client interests. The Federal Court described the conduct as systemic and deliberate, with ASIC cancelling the company’s financial services licence in November 2024.

Conclusion

ASIC’s report makes it clear that both consumers and industry participants have a role to play in safeguarding superannuation. Australians are encouraged to seek independent financial advice, ask questions, and be cautious of offers that seem too good to be true - especially when it comes to SMSFs and high-risk investment schemes. Trustees and financial advisers should critically review their practices to ensure they are meeting their legal obligations and acting in the best interests of members and clients, as ASIC’s enforcement and regulatory scrutiny in this area will continue

What are the Cleardocs products available?

Cleardocs offer the following relevant products:

• SMSF Set up + Register Corporate Trustee
• SMSF Trustee Bundle
• Superannuation Trust (SMSF)
• Update to SMSF
• SMSF Change of Trustee

Please read the Product Benefits, Product Information and Frequently Asked Legal Questions carefully and consider if it is appropriate in your circumstances before purchasing any Cleardocs product.

More information from Maddocks

For more information, contact Maddocks on (03) 9288 0555 and ask to speak to a member of the Commercial team.

More Cleardocs information on related topics

• Update for SMSF Trustees: ATO Enforcement Actions for Non-Compliance
• Necessary safeguard for SMSFs and Trusts: Why you should have an Enduring Power of Attorney in place
• Reminder for SMSF trustees: be aware of legal requirements for accessing superannuation early
• SMSF trustees, when things go wrong, don't shy away from voluntary disclosure

[1]Australian Securities and Investments Commission v DOD Bookkeeping Pty Ltd (in liq), in the matter of DOD Bookkeeping Pty Ltd (in liq) (No 2) [2025] FCA 395. You can read the full case here.

[2] Australian Securities & Investments Commission Annual Report 2024 – 25. You can read the full report here.