In a keynote address, ASIC Commissioner Simone Constant set out the Australian Securities and Investments Commission’s current focus on superannuation trustee member services, arguing that growth in the system to nearly AUD 4.2 trillion in funds under management has not been matched by service quality. The speech framed governance failures as a common driver of problems, with death benefit claims handling identified as the initial priority area in ASIC’s multi-year work program. The address pointed to a sharp increase in complaints about death benefit claims, noting that between 2021 and 2023 complaints to the Australian Financial Complaints Authority about claims handling delays tripled as a proportion of superannuation service complaints, followed by a spike in trustees’ internal dispute resolution data in early 2023. ASIC highlighted enforcement escalation where serious failures were found, including current court proceedings involving AustralianSuper and Cbus for significant claims handling delays. It also referenced a March roadmap to trustees with 34 recommendations on customer service, processes and monitoring, and reported a key review finding that 78% of delays in death claim files were due to factors within trustees’ control such as staff errors, periods of inaction and inefficient information requests. Governance and oversight shortcomings were illustrated by the claim that none of the trustees in the review tracked end-to-end claims handling times, alongside reminders that Regulatory Guide 271 requires regular complaint data analysis to identify systemic issues and that trustees remain accountable for outsourced service delivery, including anti-scam and anti-fraud controls. ASIC indicated its Chair would soon announce the next phase of the broader member services project, and signalled further work on the “boardroom to frontline” information disconnect as the Financial Accountability Regime extends to superannuation trustees this year.
Australian Securities & Investments Commission 2025-05-28
Australian Securities and Investments Commission calls on superannuation trustees to fix governance gaps and death benefit claim delays
ASIC Commissioner Simone Constant highlighted governance failures in superannuation trustee member services. With funds nearing AUD 4.2 trillion, service quality, especially in death benefit claims handling, has lagged. Complaints about delays have surged, prompting ASIC to escalate enforcement, including actions against AustralianSuper and Cbus. A March roadmap with 34 recommendations showed 78% of delays were due to controllable factors like staff errors. ASIC emphasized tracking claims handling times and analyzing complaint data per Regulatory Guide 271. The Chair will soon announce the next phase of the member services project as the Financial Accountability Regime expands to superannuation trustees.