Retail superannuation funds have been the main focus of the Australian Securities and Investments Commission (ASIC) over the past four years, with the regulator having completed 10 investigations, only one of which was of an industry fund.
This has been revealed by ASIC in an answer to a question on notice posed to ASIC chair, James Shipton, during a hearing of the Joint Parliamentary Committee on Corporations and Financial Services.
ASIC’s formal answer said the regulator had completed 10 investigations into superannuation funds since January 2015.
“Of these 10 investigations, nine were into retail funds, and one was into an industry fund,” it said.
“ASIC currently has an additional 13 investigations on foot into superannuation funds, nine into retail funds and four into industry funds.”
The ASIC answer said that an “investigation” meant a matter being handled by an appropriate ASIC Enforcement team and for which a s13 file note has been signed.
“However, this does not cover every regulatory inquiry made by ASIC in relation to superannuation since 2015,” it said. “ASIC also conducts investigations which might relate to superannuation funds, but which are not captured because the investigation is not into conduct by the trustee of the superannuation fund. This might include conduct by financial advisers or promoters.”
ASIC urged the committee to note that for one of the ‘current’ investigations into a retail fund, the investigation phase was completed but the matter was now the subject of litigation and not yet finalised.
Comments
ASIC keeps telling everyone, despite the numerous issues highlighted with union funds that need to be investigated and addressed, that they have no bias. Yet the facts keep saying otherwise, and the union funds continue on their merry way. What will it take for them to act?
Of course, ASIC has yet to investigate the background to how Hastings Infrastructure miraculously "shut down" without a whimper. Obviously anti-competitive behaviour isn't on their to-do list.
and yet Industry Super Funds have the worst customer service, live in 1980, use things called Fax machines, take 10 months to process estate claims, pool deposits into one central account requiring manual sorting, outsource admin to overseas countries and I could go on and on and on. I suspect false, deceptive, misleading advertising in large letters stating "Our Administration Fees are the lowest in the industry at only $1.50 per month" followed up with similar advertising stating performance to 30 June 1985 in small letters was 11.9%......is clearly a viable & winning marketing strategy.
I think they have over done the investigations of Industry Funds - perhaps this one investigation was into the "Independent Financial Advice"claim with a $10,000 fine - payment being optional I seem to remember.
I agree with Adam. 2 days before the anniversary of our sons death we received 50% of his Super and Death Benefit even though we were his beneficiatries of his Super and his Will. Good, gooder, guess?
I have tried to ask for some of my super fund be released but I have to put claim into ATO first. However TWICE has been rejected now this year. I was with HESTA now have changed to Australian super. Each time their answer has been either it's missing a page of info or a question was incorrect. Not helpful at all. I've been out of work with no Income for approx 8mths and really struggling now I have all my medical evidence too. Thankyou
Still if ASIC cleans up the retail funds then possibly the retail funds will be more attractive to supernatants.
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