Insignia has been fined more than $10.7 million for failing to put customers’ funds into default MySuper products, with the regulator slamming the financial services giant for “still struggling with foundational issues”.

But shares in the company, known as IOOF until 2021, rallied 5 per cent on Monday despite the penalty, which is the first significant headache for chief executive Scott Hartley since he joined the company in March.