To make a long story short Competence Issues, Power struggles and Litigation can completely wipe out all investment capital in a SMSF Property Development Super Fund. To make things worse all this has happen under the watchful eye of ASIC without decisive intervention. SMSF investors have very little control over the activities of their fund managers. The only way out is replacement which requires 51 % of the investors vote. ASIC policy regulates that complainants will not be informed whether or not an investigation will be launched. ASIC will however publicly report enforcement actions in the event that any investigations proceed to that point.
ASIC NEWS - extracted from an article in the Australian.
The corporate regulator has warned there remain widespread shortcomings in the financial planning industry. Actions where taken against Macquarie, Wealth manager AMP, investment bank UBS and CBA and warnings by ASIC have led to the Future of Financial Advice reforms. “This is an industry that has to lift its game,’’ ASIC commissioner Peter Kell said. “They need to put the customer first.” ASIC imposed an enforceable undertaking in January 2013. But in May a parliamentary committee called for a royal commission.