ING Bank compensates members millions after misleading promotion
Australia's corporate regulator concerned by deceptive superannuation advertising.
ING Bank (Australia) will hand over approximately $5.38 million to around 24,500 members after acknowledging some of its promotional material was potentially misleading.
The Australian Securities and Investments Commission (ASIC) raised concerns that ING Bank advertised "no fees" for the "cash investment option" of its superannuation fund (Living Super).
The bank also touted "no investment and administration fees" for its "balanced option" and having low fees options without properly informing customers they would be paid a lower interest rate on cash invested than the rate paid to Savings Maximiser customers for a relevant investment.
ASIC said some of the promotions also failed to indicate that the "no fees or low fees" features may not continue should ING Bank no longer be the investment manager.
Concerns regarding ING promotions were identified as part of ASIC's ongoing strategy to improve guidance around the disclosure of fees and costs for superannuation and managed investment products.
ING Bank admitted its communications could have been clearer and will write to all Living Super members to advise them of the difference in account interest rates, potential fee changes and forthcoming compensation from the lower interest rate applied.
The bank also said it will cease promoting Living Super based on "no fees" or "no investment and administration fees" and has amended its policies to ensure similar promotions are not run in the future.
If you've been affected by this action, you won't have to do anything to receive compensation. Living Super members with concerns or questions can contact ING Bank on 1800 063 965.