Is there anything you can do to protect your superannuation from dodgy providers or questionable financial advice? And if someone rings you out of the blue and tempts you with a better return on your savings – what should you do?

Around 12,000 Australians with A$1.2 billion in retirement savings have been caught up in three collapsed or frozen funds: First Guardian, Shield and Australian Fiduciaries.

People have described being cold-called or seeing ads on social media, suggesting they could earn more by leaving their current super fund. Several financial advisers linked to these funds have now been banned for giving “inappropriate advice” to clients, containing “false and misleading statements”.

As a former financial adviser and now researcher, here are the questions I wish more people asked to screen out scammers and dodgy financial advisers faster – and places to seek help if you need it.

What do I do if someone calls with an unexpected sales pitch?

The first thing you need to know is that in Australia we have anti-hawking legislation. This prohibits people making cold calls or unsolicited face-to-face approaches for financial products, such as superannuation.

If you get a phone call like that, the official advice is now to hang up immediately. If they persist, you could say:

I didn’t request this cold call. Did you know you’re breaking the law and I can report you?

They will probably put the phone down! They know they’re not doing the right thing. If they keep talking, hang up.

Block their number. Tell a family member if you need help. If you’ve shared personal information, call your super fund or bank.

I’m thinking of switching super funds. What should I ask first?

Whether you’re talking to a super fund or a financial adviser, my first three questions would be about their fees, what’s known as “the 4Ps” – philosophy, people, process and performance – and risk profile.

What are the fees?

Don’t just look at a super fund’s returns: look closely at their fees.

Your super fund statement will disclose how much administration, insurance premiums, transactions, buy/sell spread and investment fees and costs are being deducted.

High fees charged by a trustee eat up your super balance over time. If a fund earns 7% annually and charges fees of 0.63% annually, then your actual return is only 6.37%.

Is the fund a good match on “the 4 Ps”?

Go to the provider’s website to understand whether the fund’s philosophy reflect your core beliefs about investing and risk.

Learn about the reputations of the people behind the fund who lead and invest your money.

Find out what process they use to select and manage investments. Finally, consider how well and consistently the fund has performed over the past five to ten years.

What’s the risk profile?

Super funds classify investment options into risk profiles (such as conservative, balanced or growth) to provide you with investments to match your risk tolerance and age.

You can find a fund’s risk profile on the fund’s website under investment options, in the product disclosure statement and target market determination.

How can I compare my super fund?

Want to check if your retirement savings are in an underperforming fund? For the past few years, the Australian Prudential Regulation Authority (APRA) has called out MySuper funds that aren’t performing to standard.

Compare funds with the Australian Tax Office’s YourSuper Comparison Tool.

How I can find out if a financial adviser’s been in trouble?

On advisers, you can investigate their reputation or past complaints at:

If you’re comfortable using OpenAI, such as ChatGPT or CoPilot, you can try searching with the following prompts.

• “Can you find any complaints or disciplinary actions against (name of adviser/fund)?”
• “What is the public reputation of (adviser/fund) in financial forums or news?”
• “Has (adviser/fund) been mentioned in any ASIC enforceable actions, bans or media reports?”

More action promised, but not yet delivered

There are echoes in what’s allegedly happened with First Guardian and Shield of Storm Financial’s collapse in 2009, which also hit thousands of people.

There are bad apples in every industry. Whether it’s in finance or medicine, it’s often colleagues who know who the dodgy operators are. Then it’s a question of whether anyone does anything about it.

In the case of First Guardian and Shield, other financial advisers helped raise the alarm – unfortunately several years before the corporate watchdog, the Australian Securities and Investments Commission, acted.

The commission says they’re now working with the federal government on more “reform options”. But that won’t help the thousands of people currently without access to their retirement savings, uncertain how much of those funds they’ll recover.

You can seek free counselling and advice from the National Debt Helpline (1800 007 007); Mob Strong Debt Helpline (1800 808 488) for Aboriginal and Torres Strait Islander people; or the Consumer Action Law Centre.

Disclaimer: this is general information only and not to be taken as financial advice.