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ASIC warns Australian superannuation funds over complaint handling
The Australian Securities and Investments Commission (ASIC) has threatened enforcement action against superannuation trustees for failing to adequately address rising customer complaints. Commissioner Simone Constant warned that many funds are ignoring complaints, which she described as a “canary in the coal mine” for systemic issues such as payment errors, service delays, communication failures, fraud, and misconduct.
ASIC's review of all 45 superannuation trustees found that 25 percent were not regularly analyzing complaint data to identify systemic problems. This comes as the Australian Financial Complaints Authority (AFCA) reported a 43 percent year-on-year increase in complaints during the last financial year.
The regulator highlighted significant failures regarding the timely payment of death benefits, noting that some families waited years for insurance payments or remaining balances. Constant emphasized that as Australia's population ages and more people transition to withdrawing retirement income, the industry must improve its accountability to prevent larger failures and maintain trust in the $3.4 trillion sector.
Entities
Australia · Australian Financial Complaints Authority · Australian Securities and Investments Commission · Simone Constant
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The superannuation industry is valued at $3.4 trillion. www.perthnow.com.au
- [○ 1 SOURCE] A quarter of the 45 superannuation trustees reviewed were not regularly analyzing complaints data to identify systemic issues. www.perthnow.com.au
- [● 3 SOURCES] ASIC has threatened enforcement action against superannuation trustees that fail to improve complaint handling. www.smh.com.au · www.perthnow.com.au · www.theage.com.au
- [○ 1 SOURCE] Some trustees have caused widespread delays in paying out death benefits and insurance payments to families. www.perthnow.com.au
- [● 3 SOURCES] Superannuation complaints increased by more than 40 percent last financial year. www.smh.com.au · www.perthnow.com.au · www.theage.com.au