Due to its mandatory and commonplace nature, superannuation is seen by most Australians as a safe investment option for their retirement period. However, the nation has recently seen multiple cases involving irresponsible management of investors’ superannuation funds. One example is the case involving the First Guardian investment scheme that has allegedly put over 6,000 Australians at risk of losing their superannuation fund.
SBS Indonesian spoke with Central Queensland University’s School of Business and Law’s Dr Angelique McInnes who emphasised the need for Financial Advisors to be more responsible in giving advice to clients, particularly those who are more vulnerable to scams.
While some financial advisors have in fact warned the Australian Securities and Investment Committees about their doubts about First Guardian’s practices, she added that advisors nonetheless should be more proactive in researching further and practicing due diligence with regards to investment schemes.
Those suspecting scam or misleading conduct could report it to scamwatch, which is under ACCC. Other resources include the website moneysmart.gov.au.
Muntia Wibisono and Surya Setiyaputra both work in Australia and therefore have a portion of their salaries allocated for superannuation by their employers. Both have heard of the First Guardian case and have their own criteria when choosing their super funds, such as low fees and large numbers of investors.
Both Muntia and Surya consider Australia’s superannuation system to be one of the best in the world but not entirely risk-free.
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Note: The information expressed in this interview is of general nature. This information may not be appropriate for your personal circumstances—contact your financial advisor for clear advice on your situation.
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