In a letter sent to the CEOs of superannuation trustees last month, Australian Securities and Investments Commission (ASIC) Commissioner Simone Constant demanded that the executives resolve longstanding customer service failings.
Constant argued that "consistently weak" processes, particularly in handling bereaved members, are indicative of broader governance failures. She demanded that CEOs review internal dispute resolution processes, commit to measurable improvements in business plans, and report progress to boards. "Deficient services harm members during their most vulnerable times," Constant said.
ASIC recently sued Cbus Super, one of Australia's largest superannuation funds, over $20 million in unpaid death and disability claims, calling the issue "systemic." This followed the publication of ASIC's interim observations on death benefit claims handling across the sector, which revealed widespread shortcomings. "We have observed operational failures by trustees to gather and analyse data that provides insights into the outcomes experienced by claimants," Constant said. “These failures make it impossible for trustee boards to provide appropriate oversight on their performance when handling death benefit claims.”
As ASIC finalizes a broader review for publication in early 2025, Constant reminded the CEOs of their responsibilities under the upcoming Financial Accountability Regime (FAR). "To satisfy yourselves that you are complying with your FAR obligations, you must have regular access to accurate, complete and meaningful performance reporting to enable you to identify issues with services for members and beneficiaries and take swift action to address them," she said.
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