As a consequence of the spike in scams, ASIC has recently shut down unlicensed financial services business A One Multi Services Pty Ltd, which seems to have received $2.4 million from investors.
The Australian Securities and Investment Commission (ASIC) has warned investors of marketing efforts pushing Australians to switch from retail and industry superannuation funds to self-managed superannuation funds (SMSFs) containing crypto assets.
The financial regulator has noticed a spike in marketing directing retail investors to SMSFs so they can invest in a ‘high return’ portfolio, namely targeting the SMSF trustees to invest in crypto.
For the last couple of years, ASIC has increased its investigative focus on superannuation funds as they show a tendency for attracting scammers.
Given the high risk nature of crypto, the regulator is recommending superannuation fund members to seek advice from a licensed financial adviser before agreeing to transfer superannuation out of a regulated fund into an SMSF.
“Setting up an SMSF is one of the most significant decisions you can make relating to your retirement savings. Before making the decision to set up an SMSF, seek advice from a licensed financial adviser. Do not rely on social media ads or online contact from someone promoting an ‘investment opportunity’”, the announcement stated, adding that investors should be wary of people ‘cold calling’, text messages and emails that ask investors to invest in…
