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Highlights
ASIC launches review into superannuation trustee boards and complaint-handling systems
AustralianSuper (ASX:AUSTRALIANSUPER) facing legal action over delayed death benefit claims
Regulatory focus sharpens on enforceable obligations and systemic issues in member services
The Australian superannuation sector, including key funds listed in the ASX 100, is under increased scrutiny following new regulatory measures introduced by ASIC. The corporate watchdog has announced a formal review into the operations of trustee boards, specifically targeting how they respond to customer complaints and whether they meet their enforceable obligations.
This action follows findings from ASIC’s earlier review on delayed death benefit payments. The study identified significant operational lapses across several superannuation funds, prompting concerns about the broader quality of service delivery and transparency within the sector. AustralianSuper (ASX:AUSTRALIANSUPER), a key entity in the ASX 100, is currently facing legal proceedings tied to delays in thousands of member claims.
Trustee Boards to Face Governance Review
ASIC has initiated a new compliance project aimed at uncovering systemic issues within superannuation trustee boards. The regulator will assess whether trustee directors are sufficiently aware of the issues impacting members, especially in cases involving complex or delayed complaints.
The review will collect operational data from funds over the coming months. This information will inform ASIC’s broader evaluation of internal governance practices across the sector. It is expected to focus on whether trustee boards have effective mechanisms to assess complaints data and address recurring failures in member service functions.
Lawsuits Prompt Wider Sector Reassessment
The decision to act came after ASIC identified deficiencies in how super funds handle death benefit claims. Delays in processing these benefits have exposed what the regulator calls “board blind spots,” where trustees may be unaware of problems occurring in service delivery.
AustralianSuper (ASX:AUSTRALIANSUPER) has been named in court filings that allege a failure to resolve thousands of claims in a timely manner. Legal experts indicated that these failings could result in directors being disqualified if found in breach of their statutory responsibilities. This development marks a significant regulatory shift in ASIC’s oversight strategy.
Member Complaints Viewed as Key Governance Metric
ASIC Chair Joe Longo addressed the issue during a recent speech, highlighting that trustee boards are already required to use complaint data to identify systemic faults. Failure to act on such data, according to ASIC, constitutes a breach of mandatory compliance standards.
The watchdog’s focus will now move toward determining how superannuation trustees respond to this form of member feedback and whether internal processes reflect a mature approach to oversight and accountability. Longo emphasised that complaint data provides valuable insight into how well a trustee understands the member base and manages operational risk.
Sector Implications Extend Across ASX Listings
ASIC’s review has implications for a wide array of superannuation-linked companies, particularly those within the ASX 100 and ASX 200. Funds operating within these benchmarks are expected to demonstrate stronger governance protocols and real-time responsiveness to member concerns.
The heightened regulatory environment also adds pressure on boards to improve transparency, enforce complaint resolutions, and uphold their obligations under enforceable codes of conduct. With sector-wide evaluations now underway, trustee boards face renewed expectations around ethical and operational standards.
