Have you received a phone call from someone offering to help with your superannuation? It might sound helpful, but it’s important to know that not all advice is trustworthy.
Recently, many Australians have reported losses after being encouraged to move their super into risky investments – First Guardian Master Trust, Shield Master Trust and Australian Fiduciaries. These entities are currently under investigation by ASIC, with civil penalty proceedings already underway.
These situations often started with a phone call from someone claiming to be a financial adviser. Some callers claimed they could offer better returns or lower fees, but these claims were not verified and led to poor outcomes.
What’s the risk?
These calls are often unsolicited, meaning you didn’t ask for them.
The person may sound professional, but they could be working for a company that earns money by moving your super into high-risk products.
You might be told to switch to a self-managed super fund or invest in something that isn’t properly regulated.
These schemes can be hard to understand and may not be suitable for your needs or risk level.
How to protect yourself
- Be cautious of any unexpected call offering financial advice.
- Don’t share personal details like your super account number or financial information over the phone.
- Ask questions: Who are they? Are they licensed? What’s in it for them?
- Take your time: Don’t feel pressured to make quick decisions.
- Speak to someone you trust: Contact REI Super’s helpline or book a session with one of our in-house financial advisers.
Learn how to choose a financial adviser
Choosing the right financial adviser is one of the most important steps you can take to protect your super and make informed decisions about your financial future. A trustworthy adviser will take the time to understand your personal goals, explain things clearly, and never pressure you into quick decisions.
To learn more, visit MoneySmart for practical tools and advice.
Why this matters
Some investment schemes are not supervised by the Australian Prudential Regulation Authority (APRA), which means they don’t follow the same rules as your super fund. They may be registered with the Australian Securities and Investments Commission (ASIC), but oversight can be limited. That’s why it’s important to be extra careful.
What REI Super offers
- In-house financial advice that’s free from commissions or sales targets.
- Investment options that are carefully and regularly reviewed.
- Support and education to help you make informed decisions.
Your super is your future. Let’s keep it safe.
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The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that it has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read REI Super's Product Disclosure Statement and Target Market Determination before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129