Superannuation fund members are being duped into changing funds by slick salespeople out to win a quick commission, according to one of Australia's leading industry super funds.

The comments come as Federal Court fines are slapped on a Tasmanian financial adviser for breaches of the Corporations Act. The person involved was ordered to pay legal costs and make restitution to the affected clients.

The former AMP financial planner advised five clients last year to switch from Tasplan, the not for profit industry super fund to an AMP product without disclosing the disadvantages of such a move.

Neil Cassidy, General Manager of Tasplan, welcomed the results of the investigation undertaken by the Australian Securities and Investment Commission (ASIC) but believes ASIC has only found the tip of the iceberg.

"Every week of the year Australians are being tricked into switching super funds by unscrupulous agents and financial planners chasing commission." Cassidy said.

According to Cassidy, the extension of superannuation choice has increased the level of 'churn', despite Federal Government assurances that deregulation of Australia's superannuation market would not generate the billion dollar losses associated with the U.K. experience.

In that country, the fees and commissions incurred as people change their super funds offset any perceived benefits and in some cases left members severely disadvantaged.

"Superannuation is not like a cheap mobile phone contract, where members can regularly switch providers and suffer relatively small losses" Cassidy said.

According to Cassidy, some Tasmanian employers are also having an adverse experience when large numbers of employees find they have been duped by agents and others operating at their workplace – with the blessing of the business.

"The most obvious example of an issue that has generated workplace discontent and a lowering of employee morale has been when employees have lost insurance cover as a result of changing their super" Cassidy said.

"Some members are returning to their former super fund when they realise their mistake, only to learn that the insurer won't reinstate their insurance cover."

"In other cases, members have incurred large up-front costs in the form of commissions that they didn't know about and which could take years to recoup" Cassidy said.

Cassidy has called on the Federal Government to increase the safeguards associated with superannuation and to better protect Australians against those in the finance industry who see super as a cash cow.