ASIC defends Cbus mediation

The Australian Securities and Investments Commission (ASIC) has sought to make clear that entering into court-imposed mediation with industry fund Cbus will not prevent the public disclosure of issues involving the fund’s late payment of death benefit claims.

ASIC says it has been ordered by the Federal Court of Australia to attend mediation with Cbus after the filing of pleadings by both parties and says it is common practice for such mediation to occur in response to ASIC civil law enforcement proceedings.

The regulator was responding to questions on notice from NSW Liberal Senator and chair of the Senate Economics References Committee, Andrew Bragg, who expressed concern that mediation process might obscure the facts relating to Cbus.

“This is a matter of great public interest, as you would imagine. There are people here who have had to get multiple death certificates for their families when they’ve been suffering a bereavement. There have been people who’ve waited years and years. There are dozens and dozens of really heart-wrenching case studies,” Bragg told ASIC during Senate Estimates hearings.,

“In fact my office has had to deal with two or three just this week where they can’t get answers from Cbus, in some cases, many years after people have died. All this is a preface to my question, which is: given this is a matter of great public interest, are you seriously thinking about dealing with this matter through mediation?”

ASIC’s formal response said the purpose of the mediation orders were to provide an opportunity to the parties to reach an in-principle resolution of the proceedings or to narrow the issues in dispute so as to minimise the cost and time of the court.

“In the event agreement is reached between the parties at the mediation on any aspect of the case, the matter will proceed to a public hearing where the Court will receive evidence and make open findings on whether there have been contraventions of the law and the appropriate penalty to impose,” ASIC said.

“The Court is not bound to determine the matter in accordance with any agreement that might be reached between the parties at mediation.”