ASIC sues OnePath for fee-for-no-service
The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings against superannuation trustee OnePath Custodians for allegedly charging fee-for-no-service and making false and misleading representations to fund members.
According to the regulator, OnePath allegedly incorrectly charged over $4 million in fees to more than 18,000 fund members when it was not entitled to do so.
ASIC also alleged that from 15 December, 2015, OnePath charged financial advice service fees totalling $3,787,966.21 to 16,210 members who had been de-linked from their employer-sponsored superannuation plans.
Additionally, OnePath allegedly sent these members letters and annual statements until about May 2020 which failed to inform them of their rights regarding adviser service fees, including their right to terminate the fees.
Further to that, from December 2015 until about January 2019, OnePath incorrectly charged financial adviser service fees totalling $502,667.18 to 2,508 members who did not have a linked plan adviser, ASIC said.
According to ASIC, OnePath allegedly sent annual statements to these members until about October 2019 representing it was entitled to deduct adviser service fees from their accounts and that they were obliged to pay.
ASIC deputy chair Sarah Court said: “Superannuation is important for the future financial security of Australians. Consumers must be able to trust they are being charged fees correctly by their superannuation providers. ASIC’s case alleges that OnePath failed to do so in this case”.
ASIC would be seeking declarations, pecuniary penalties and other orders from the Federal Court.
AUTHOR
Oksana Patron
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
