ASIC flags focus on misconduct in the superannuation sector

The news: Financial regulator ASIC has warned it will look to take strong, targeted action against misconduct in the superannuation sector.

The numbers: The regulator’s warning comes just weeks after it took AustralianSuper to court over alleged failures by Australia’s largest superannuation fund, which cost members approximately $69 million.

The context: ASIC said on Wednesday its action against AustralianSuper marks the start of further intervention in the super space in a bid to ensure a focus on member outcomes. “The July to September quarter saw ASIC achieve strong results in court and file significant matters that go toward our ongoing work to protect consumers,”ASIC Chair Joe Longo said. “Our focus on the best interests of members in the superannuation sector is part of our continuing work to make the financial system fair for all Australians.”

Mr Longo added that failure to merge duplicate accounts is problematic across the superannuation industry, and the regulator expects to take more action to prevent these failures.