A number of issues:-

Employers are rarely licensed to give financial advice and therefore cannot advise employees on which superannuation fund to choose.

If your employees need assistance, they should refer to a financial planner or in most cases they will need to do the research themselves.

Penalties apply if your business does not comply and the typical fine is 25% of the employees Super Guarantee contribution up to a maximum of $500 per employee per quarter payable to the employees superannuation account.

If an employee responds with a nomination, has that been actioned and have they provided the necessary compliance correspondence? It is important to note the day of their response.