Particle.news
Get it on Google Play
Download on the App Store
3 ARTICLES
·
3w ago

ASIC Finds Widespread Oversight Failures at Superannuation Platforms

ASIC warned trustees that weak fee controls, poor monitoring of adviser deductions and inadequate protections for low‑balance members risk enforcement and public naming.

The Sydney Morning Herald logo
The collapse of two super funds left almost 11,000 people $1.1 billion out of pocket. (Steven Saphore/AAP PHOTOS)
Close up shot of ASIC commissioner Simone Constant at her Sydney office. She has long blonde hair and wears a black jacket.

Overview

  • ASIC released a 29‑30 page review on Sunday that examined six platform trustees responsible for more than $300 billion in platform super and about 977,000 member accounts.
  • The report found advice fee caps were mostly too high or poorly designed and that trustees failed to adequately monitor adviser fee deductions and advice documents.
  • ASIC flagged limited checks on risky or illiquid investments on platform menus and weak screening of advisers and lead‑generation referrals as ongoing threats to member balances.
  • The watchdog warned trustees to remediate the deficiencies or face naming, public censure and possible enforcement actions, saying its patience is exhausted.
  • The findings follow the Shield and First Guardian failures that left almost 11,000 members roughly $1.1 billion worse off and come as platform-held savings have more than tripled to about $396 billion while advice fees have grown fourfold.