ASIC ‘extraordinarily active’ in super crackdown
The Australian Securities and Investments Commission (ASIC) has renamed AustralianSuper, Telstra Super and Active Super as it has reinforced the degree to which it is cracking down on superannuation funds and particularly around the handling of death benefit payments.
ASIC deputy chair, Sarah Court said that the regulator had embarked on a multi-phase project aimed at the delivery of services by superannuation funds which would run through 2024 and beyond.
“We’re focusing initially on death benefits claims handling and we have investigations underway,” she said.
Court said that ASIC was aware of issues raised by the Australian Financial Complaints Authority (AFCA) and was aware of media reports that asserted that trustees were involved in unacceptable delays.
“I can assure you we are looking at it,” she said. “It is front and centre, I don’t have a case to announce to you today but I can assure you we will be continuing to focus on that.”
She said ASIC was aware of multiple distressing experiences encountered by superannuation fund members.
“We need to look at the systemic issues in these superannuation funds and the way in which trustees are dealing with their members,” she said. “We need to look at it in a systemic way. We are not an individual complaints handling body – AFCA is there to do that.”
“AFCA is telling us there are systemic issues here and that is what we’re looking at.”
ASIC is absolutely extraordinarily active in enforcement of superannuation we’ve got 10 matters before the courts at the moment including Telstra Super, AustralianSuper, Active Super and a number of others.
Oooohhhh so scary ASIC with the big words…..”ASIC is absolutely extraordinarily active in enforcement of superannuation”
Bust out the Wet Lettuce Leaf again ASIC.
A couple of $5,000 fines and some media releases of how tough ASIC are on Industry Super.
BS, BS, BS AGAIN FROM CORRUPT ASIC.
Cute, ASIC names their union fund mates knowing they will do absolutely nothing. What’s the bet the staff at Australian Super are all having a laugh about it, while working out what AFL/NRL games this year they are going to invite ASIC and APRA staff to their super boxes.
Had a situation last year where AwareSuper deducted tax out of death benefit. The poor guy died before they refunded it.
Nothing is going to happen in these cases..Nothing ever happens.
A few ASIC staff that investigate the matter, will get well-paid positions within AwareSuper’s compliance section. AwareSuper will payout millions to consultants previously working at ASIC or APRA. A Minister will get some donations. Maybe some complimentary tickes to the AFL or Australian Open tossed around too. You know how it goes.
Financial Planners that call out these errors have their ASIC levy go up by 147% and are an endangered species.
In some countries they’d call this Corruption. In Australia we have a unique system, where the saying “it’s not what you know it’s who you know” takes on a whole new meaning.
Secretary: Mr AwareSuper CEO, that lady from ASIC is here:
Mr AwareSuper: Send her in Dorris.
Sally from ASIC: I’m here about those Insurance claims that you took so so long to process and then incorrectly took tax out. A typical client had a $500,000 payment which would have paid for medication but died before payout. He could have spent the money with family even.
Mr AwareSuper: Sally you’re right. As you know we paid the benefit so no harm was done. But I do admire your attitude and our Compliance division has some positions come free and we’re wondering if you’re available. It comes with a $100,000 sign on bonus, a car spot too and 10 weeks annual leave.
Sally from ASIC: I just have some Financial Planners I need to cull, that raised these issues. I can say due to spelling mistakes in their FDS, and they handed them out a day earlier than the anniversary date, that we need to send them off to jail for 10 years and ban them. When do I start ?
Financial adviser here, I had a claim for a client Income protection. Insurance inside of super they took 8 months to make a decision on. AFCA claims assessor said he can’t do anything because a decision hadn’t been made on the claim. AFCA need a decision on a claim/ complain before they can do anything. lucky my client had money in the bank or he would have lost his house.
I helped the client apply to AFCA and they did nothing to speed up the super fund insurance division to make a decision on the claim.
Stalling on claims so the clients give up is huge in Super with Insurance group cover. can’t pay up if we don’t make decisions on these claims