The Australian Federal Court has fined AustralianSuper $27 million for failing to merge multiple superannuation accounts, a breach of its fundamental duties to members.
AustralianSuper Fined $27 Million After ASIC Investigation
AustralianSuper is the trustee of Australia’s largest superannuation fund.
The Australian Securities and Investments Commission (ASIC) said in a recent press release that it launched an investigation into systemic failures at the country’s largest super fund, which resulted in approximately 90,700 members holding multiple accounts between 1 July 2013 and 31 March 2023.
These members reportedly incurred losses of around $69 million due to multiple administration fees, insurance premiums and lost investment earnings.
According to ASIC, Justice Hespe, in her ruling, described AustralianSuper’s failures as “serious and highly concerning,” criticising the lack of appropriate systems to ensure compliance.
She further stated that “it is inexcusable” for the fund to have neglected its obligations and failed to address repeated human errors over nearly a decade.
ASIC Deputy Chair Sarah Court condemned AustralianSuper’s breach of trust, stating: “This penalty reflects the severity of the misconduct… which betrayed the trust of its members.”
She added that the failure to escalate and remediate the issue in a timely manner exacerbated the harm.
All affected members have since been remediated. ASIC has reiterated its commitment to ensuring super funds meet their obligations, with further investigations ongoing in the sector.
