Rest cops two ASIC infringement notices for misleading conduct

The Australian Securities and Investments Commission (ASIC) has handed down two infringement notices to superannuation trustee, Retail Employees Superannuation Pty Ltd (Rest), following “false or misleading representations” made to over 2,000 members in relation to their insurance coverage.

The notices, totalling $37,560, allege Rest sent annual statements and emails to members who had previously cancelled, chosen not to receive, lost or not held insurance cover via the fund suggesting that they continued to hold active death, total and permanent disability (TPD) or income protection insurance.

The corporate watchdog said in a statement that Rest made “false or misleading reprsentations” in sending the annual statements and emails because this indicated the fund “had a right to activate insurance cover for the member and, as a result, deduct insurance premiums from the member’s superannuation account”. ASIC confirmed that “Rest had no such right” in these circumstances.

“Addressing member services failures in the superannuation sector is an ASIC 2025 enforcement priority while better retirement outcomes and members services is a 2024/25 strategic priority,” ASIC said in its statement.

“ASIC seeks to enhance public confidence in the superannuation industry by encouraging Rest and other superannuation trustees to maintain adequate systems to prevent administrative errors that erode superannuation balances and to act quickly when they become aware of an error to avoid misleading members.”

The regulator also confirmed Rest paid the infringement amounts on 22 September 2025.