ASIC tells superannuation trustees to fix communication deficiencies
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The news: The Australian Securities and Investments Commission (ASIC) is calling on superannuation trustees to improve their communication with retirees after a review found there was a lack of urgency among funds representing more than 9.3 million members.
The context: In the latest ASIC review titled ‘From superficial to super engaged: Better practices for trustee retirement communications’, some trustees were found to be using blanket communications at pre-retirees even for those already in retirement.
The financial regulator called on trustees to “focus on informing their members about retirement rather than prioritising product promotion and member retention”, tailor communications to the needs of members and improve oversight of external communications service providers, among other actions.
Even though the retirement income covenant obligations commenced in July 2022, the latest ASIC review also found that some trustees are yet to address shortcomings identified by the financial regulator and the Australian Prudential Regulation Authority in 2024.
The review detailed retirement communications practices between 1 July 2022 and 11 December 2024.
More than 1.5 million members are in the retirement phase, holding about $575 billion in superannuation assets collectively and there more than 2.5 million Australians set to enter retirement over the coming decade.
But ASIC commissioner Simon Constant said the “Moneysmart research suggests only one-third of Australians on the cusp of retirement are confident that they will be financially comfortable once they leave the workforce”.
The superannuation trustees that participated in the review included:
- Australian Meat Industry Superannuation Pty Ltd
- Aware Super Pty Ltd
- Brighter Super Trustee
- BT Funds Management Ltd
- Commonwealth Superannuation Corporation
- H.E.S.T. Australia Ltd
- Host-Plus Pty Limited
- Legal Super Pty Ltd
- Nulis Nominees (Australia) Limited
- Retail Employees Superannuation Pty Limited
- UniSuper Limited
- Vanguard Super Pty Ltd
What they said: “It is important now more than ever for superannuation trustees to focus their attention on providing meaningful, and timely retirement communications to their members that can meet their needs,” Constant said.
“Moreover, members entering retirement typically hold larger balances, require more tailored solutions and expect high-touch support. Trustees that can meet these needs stand to unlock powerful commercial outcomes: stronger member retention, deeper engagement, and scalable growth.”
The source: ASIC media release
