ASIC’s double-edged super fund expenditure scrutiny

Mike Taylor

Managing Editor and Publisher

16 June 2025

Superannuation funds not only have to justify their expenditures as being in the best interests of members but must also now face having to explain to the Australian Securities and Investments Commission (ASIC) why they did not spend money.

ASIC chair, Joe Longo has said that superannuation funds can expect questioning from the regulator if they fail to appropriately invest in data, systems and processes that would deliver better service and responsiveness to members.

Further, he has suggested that ASIC will leverage the government’s proposed mandatory and enforceable service standards.

At the same time as restating ASIC’s concerns around the handling of members’ death benefits, Longo told a Sydney conference that the failings of superannuation funds had govern rise to questions about the level of their investment.

“Sometimes we hear from funds that further investment in data, systems, and processes is too costly or too difficult. For example, one trustee has delayed investing in a better workflow tracking and reporting capability for close to three years – even after external advice identified deficiencies. The new capability was needed to improve a critical member service,” he said.

“But the risks of not investing are just too great. It’s in the interest of all Australians to have well-run, resilient superannuation funds. So let me be clear on this point – ASIC isn’t going to question critical investments in data, systems, and processes that are essential to the delivery of member services.

“But you can expect we’ll question their absence,” Longo said.

“All this points to the cold hard truth that super trustees have to get a grip on their data, systems, and processes. They have to know what’s going on in their own business.”

Longo said that to the extent that some trustees are not across the data, systems and processes of their funds, they are failing to live up to their responsibilities to act in the best interests of their members.