The Australian Securities & Investments Commission has commenced Federal Court proceedings against Mercer Super, alleging a longstanding and systemic failure to comply with the reportable situations regime by not promptly reporting investigations into significant breaches linked to serious member services issues. Between October 2021 and September 2024, Mercer Super allegedly had inadequate systems to identify and report such matters, including failing to report seven investigations and reporting another more than a year late. The investigations included incorrect insurance premium refunds after members had died, member accounts not being created with default insurance, and trustee delays in processing updates to member information. ASIC also alleges Mercer Super provided false or misleading information in reports that understated the number of impacted members; ASIC is seeking declarations and penalties.
Australian Securities & Investments Commission 2025-08-14
Australian Securities & Investments Commission sues Mercer Super over alleged systemic failures to report member services investigations
The Australian Securities & Investments Commission (ASIC) has initiated Federal Court proceedings against Mercer Super for allegedly failing to comply with the reportable situations regime from October 2021 to September 2024. ASIC claims Mercer Super did not promptly report significant breaches, including seven unreported investigations and one delayed by over a year. Issues involved incorrect insurance premium refunds, uncreated member accounts with default insurance, and delays in processing member information updates. Additionally, ASIC alleges Mercer Super provided false or misleading reports understating affected members.