The Australian Securities & Investments Commission published a keynote speech by Chair Joe Longo stressing that directors’ core obligations have not changed despite growing regulatory and technological complexity. The speech set out practical areas where change could help directors meet expectations, while using superannuation member service failures as a current example of what can go wrong when boards and trustees do not have adequate oversight of their organisation’s systems, data and processes. ASIC confirmed it has convened its Simplification Consultative Group, comprising 10 consumer, business and industry leaders, with the first meeting held and Nicola Wakefield Evans appointed as co-chair. The group’s remit includes simplifying and consolidating ASIC’s regulatory guidance and legislative instruments and identifying priority law reforms to reduce complexity, with ASIC also pointing to potential internal changes such as improving how regulatory information is found and navigated, easing the burden of breach reporting and better explaining data requests. On governance and enforcement, the speech highlighted superannuation complaints trends and stated ASIC has sued AustralianSuper over alleged death benefit claims handling failures, alleging nearly 7,000 claimants suffered financial loss due to delayed processing between 2019 and 2024, and reiterated that ASIC’s approach to civil penalty settings applies consistently across industry and retail funds, citing recent penalties including AUD 20 million outcomes for Aware Super, Westpac or BT and Colonial First State and an AUD 27 million penalty for AustralianSuper relating to multiple account merging failures. A discussion paper informed by the group’s work and supporting technical experts is planned for release toward the third quarter of 2025, and ASIC also flagged a new report on superannuation member services in the coming weeks.
Australian Securities & Investments Commission 2025-03-12
Australian Securities & Investments Commission convenes Simplification Consultative Group and reiterates directors duties amid superannuation member service enforcement
ASIC Chair Joe Longo emphasized that directors' obligations remain unchanged despite regulatory and technological complexities. He cited superannuation service failures as oversight issues. ASIC has formed a Simplification Consultative Group, co-chaired by Nicola Wakefield Evans, to streamline guidance and prioritize law reforms. The speech also covered governance and enforcement, mentioning ASIC's lawsuit against AustralianSuper for alleged death benefit claims handling failures affecting nearly 7,000 claimants. Recent penalties include AUD 20 million for Aware Super, Westpac, BT, and Colonial First State, and AUD 27 million for AustralianSuper. A discussion paper and a new report on superannuation member services are forthcoming.