The Australian Securities & Investments Commission announced that the Federal Court has ordered AustralianSuper, trustee of Australia’s largest superannuation fund, to pay a AUD 27 million penalty after finding it failed to merge multiple member accounts as required. The Court held the contraventions reflected systemic shortcomings in processes and systems and amounted to a breach of fundamental duties and obligations owed to members. Between 1 July 2013 and 31 March 2023, around 90,700 members held multiple AustralianSuper accounts that should have been merged, resulting in approximately AUD 69 million in losses through duplicated administration fees, insurance premiums and lost investment earnings; all affected members have been remediated. ASIC said the misconduct was compounded by failures to escalate and remediate the issue once identified, and noted the proceedings were its first as co-regulator with the Australian Prudential Regulation Authority alleging contraventions of section 52 of the Superannuation Industry (Supervision) Act 1993 (Cth).
Australian Securities & Investments Commission 2025-02-21
Australian Securities & Investments Commission secures AUD 27 million penalty against AustralianSuper for failing to merge duplicate superannuation accounts
The Australian Securities & Investments Commission (ASIC) announced that the Federal Court ordered AustralianSuper to pay a AUD 27 million penalty for failing to merge multiple member accounts. Between July 2013 and March 2023, around 90,700 members were affected, incurring AUD 69 million in losses from duplicated fees and lost earnings. ASIC highlighted systemic shortcomings and noted this was its first joint proceeding with the Australian Prudential Regulation Authority under section 52 of the Superannuation Industry (Supervision) Act 1993.