Super board directors in firing line as ASIC uncovers systemic issues with death benefit claims
The corporate watchdog's findings on super funds' poor handling of death benefit claims highlights the growing risks facing directors and executives operating in Australia's $4 trillion retirement savings sector.
Board directors and executives operating in Australia’s $4 trillion superannuation sector are increasingly vulnerable to regulatory risks and even face being permanently disqualified from the sector as a result of sweeping accountability reforms that came into effect this month.
That's the chilling warning expressed by financial services lawyers in the wake of a new report from ASIC detailing systemic failures in the ways super funds handle death benefit claims — a failure the regulator blames squarely on super fund boards and executives.
ASIC's 93-page report uncovered widespread issues with the handling of death benefit claims including excessive delays and poor service; gaps in trustee data, reporting and metrics; unclear and inconsistent processes and procedures.
“At the heart of this issue is leadership that doesn’t have a grip on the fund’s data, systems and processes – and ultimately it is the customers who suffer for it,” ASIC chair Joe Longo said.
