ASIC warns funds of more action against superannuation failures

The corporate regulator has warned it plans to take action against more superannuation funds after unveiling its enforcement record over the July to September quarter.

The corporate regulator has warned it plans to take action against more superannuation funds after unveiling its enforcement record over the July to September quarter.

The Australian Securities & Investments Commission said its latest action against AustralianSuper marked the start of further intervention in the retirement space in a bid to ensure a focus on member outcomes.

ASIC took action against AustralianSuper, alleging the fund failed to do anything about multiple accounts held by some members.

The regulator alleges AustralianSuper, Australia’s largest retirement fund, failed for almost 10 years to put in place measures to identify and police multiple accounts being opened in the names of members.

ASIC claims AustralianSuper did not merge those accounts “when this was in the members’ best interests” and instead continued to charge them multiple sets of fees and insurance ­premiums.

ASIC chair Joe Longo. Picture: NCA NewsWire / Ian Currie

ASIC chair Joe Longo said the regulator expected to take more action to prevent further failures in superannuation.

“The failure to merge duplicate accounts is problematic across the superannuation industry,” he said.

ASIC said it would also continue its push against greenwashing, after taking aim at Active Super and Vanguard in the quarter.

‘‘Our focus on the best interests of members in the superannuation sector is part of our continuing work to make the financial system fair for all Australians,’ Mr Longo said.

The enforcement update comes as ASIC prepares to hold its annual conference next week, with many of Australia’s chief regulators to meet on the sidelines of the Melbourne meeting.

ASIC is set to be joined by the prudential and competition regulators, as well as the Reserve Bank and members of high-profile government agencies.

ASIC has signalled it will target greenwashing, failure in the insurance sector, protection of vulnerable consumers, as well as poor pricing, distribution and design of financial products.

“Our outcomes demonstrate our proportionate approach to addressing misconduct – drawing on the broad range of criminal, civil and administrative sanctions available in our toolkit,” Mr Longo said.

“Protecting consumers experiencing financial hardship has been a particular focus for ASIC this quarter in our enforcement and regulatory actions.”

Originally published as ASIC warns funds of more action against superannuation failures