OnePath cops $5m penalty over fees for no service

The news: OnePath Trustees will pay a $5 million penalty for charging superannuation members fees for no service and making false or misleading claims, following a Federal Court action brought by ASIC.

The numbers: The court found between December 2015 and November 2021 OnePath told members they would be charged an advice fee despite having transferred the members to a product division ineligible for advice. The fund pocketed $3.8 million in fees for services that were never received.

The context: ASIC recently announced member services misconduct and the erosion of superannuation balances as enforcement priorities in 2024. The Federal Court decision came within a week of Mercer Financial Advice being hit with a $12 million penalty for fee disclosure breaches and fees for no service in a separate action brought by ASIC.

What they said: "Members should be confident that their retirement savings are not reduced over time by superannuation trustees making deductions from their accounts they are not entitled to make," ASIC deputy chair Sarah Court said in a statement.