ANZ pays further $10.5m compensation to OnePath customers

ANZ has paid a further $10.5 million in compensation to 160,000 superannuation OnePath customers as a result of breaches within the OnePath group between 2013 and 2016.

OnePath has already paid refunds and compensation of around $4.5 million, rectifications and other remediation of around $49 million to around 1.3 million customers who were affected during early 2013 to mid-2015 by breaches.

The Australian Securities and Investments Commission (ASIC) confirmed the compensation and said it had been monitoring the resolution of a number of OnePath breaches.

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“This has resulted in ANZ (the parent company of OnePath) providing further compensation, mainly in relation to incorrect processing of superannuation contributions and failure to deal with lost inactive member balances correctly,” ASIC said.

ASIC also confirmed the finalisation of all recommendations made by an independent review of OnePath’s business activities. The final two recommendations were the last to be implemented after an independent review of the firm’s compliance functions was announced in March 2016.

The review was sought by the corporate regulator, following reports from ANZ about a number of significant breaches, and addressed life and general insurance, super, and funds management activities.

According to ASIC, OnePath has contacted the majority of affected customers and finalised the majority of these additional compensation payments. 

Commenting on the ASIC announcement, ANZ said: "While this work is ongoing, we don’t expect the majority of these customers to receive significant further reimbursements".

"As soon as we became aware of issues in 2013 we reported these breaches to ASIC and have fully cooperated with their review of this matter," the ANZ response said.

"In January 2016 we appointed PwC to conduct an independent compliance review, and reported the findings of that review in December 2016."

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Interesting we never ever see any ISA funds fined by ASIC.

Wonder how many if any breaches they actually reported. and whether ASIC has ever done any spot audits on their books, like they have so many other AFSL's? If niether breach reporting or ASIC audits have been done, then it simply stinks of corruption although I am happy to hear any other logical explanation.

Obviously the ISA must be puuuurfect, at least in the one eyed regulator's opinion.

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