The Australian Securities and Investments Commission (ASIC) is suing Cbus, a $94 billion superannuation fund, for delays in processing death and disability claims.
ASIC alleges that only 11% of 10,000 claims, dating back to September 2022, were resolved within the mandated 90-day period. As a result, members incurred financial losses exceeding $20 million, a figure expected to rise. The issue came to light after a customer complaint prompted Cbus to self-report in December. However, ASIC has since described the fund’s initial reports as “false and misleading.”
This scandal highlights broader concerns about governance and service failures within Australia’s $3.9 trillion superannuation system. ASIC’s Deputy Chairwoman, Sarah Court has flagged “widespread customer service failings” in the super industry. The regulator plans further enforcement actions, warning that super funds must improve customer-facing services. The government has also threatened stricter regulations if standards do not improve, signaling heightened scrutiny of the sector.
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