Everyone wants to get their hands on their superannuation before they qualify, but that doesn’t appear to be stopping the schemes willing to try. Now the Australian Securities and Investments Commission (ASIC) is conducting a nationwide campaign against illegal early access to superannuation following its issue of warnings to consumers earlier this year.

The regulator says some schemes are falsely claiming that consumers can withdraw their super, or use a self-managed fund, to pay off all their debts, to meet everyday expenses or for purchases such as a family home.

These schemes usually require substantial payments to the scheme promoter to gain access to the fund. Funny that…

Over the past two months, ASIC has checked more than 50 companies and individuals to assess their compliance with relevant laws.

Concerns are being raised about misleading conduct or statements encouraging people to dispose of their existing superannuation interests and establish a self-managed fund – and about unlicensed financial services, including advice and dealing in financial products.

In the past four years, ASIC has initiated 29 civil and eight criminal enforcement actions against promoters of illegal early access to superannuation schemes. These actions alone relate to more than $20 million in illegally accessed superannuation benefits.

Ian Johnston, ASIC’s Executive Director of Financial Services Regulation, says the regulator has adopted a three-pronged approach to stamping out the practice. This involves enforcement, compliance action and education to protect consumers and improve standards.