Superannuation fund directors should be held to the same standards as company board members, the corporate watchdog has warned, opening the door to potential individual prosecutions as it targets the sector’s systemic failure to treat customers fairly.

Australian Securities and Investments Commission deputy chairwoman Sarah Court turned up the heat on embattled construction industry fund Cbus on Thursday, after the regulator sued it this week over $20 million in unpaid death and disability claims owed to thousands of members. Ms Court warned on Wednesday that such shocking customer service failings were widespread in the $3.9 trillion superannuation sector.