ASIC's allegations state that AustralianSuper failed to comply with its obligations under the Corporations Act by not disbursing benefits promptly after a member's death. Specifically, at least 792 claims suffered delays that breached legal requirements designed to ensure timely payments. ASIC Deputy Chair Sarah Court expressed concerns about the profound effects on families during already challenging times, underscoring a breach of trust that affected numerous households.
Joe Longo, ASIC Chair, emphasized at a governance conference that this case exemplifies the consequences of inadequate oversight in large organisations. He highlighted the necessity for super funds to manage their resources effectively to meet customer service and compliance standards. Previous legal actions, including one against another fund, Cbus, further illustrate ASIC's focus on safeguarding consumers against delays in benefit processing.
AustralianSuper attributed the delays to challenges posed by the COVID-19 pandemic, citing increased member deaths and staffing issues. The fund acknowledged these setbacks and implemented a strategy with its service provider to address the backlog. Dissatisfied with progress, AustralianSuper made a substantial move to internalize claims processing, aiming for improved efficiency.
The fund's efforts to rectify the situation included a significant investment in service improvements and the launch of an in-house bereavement centre. According to AustralianSuper, these measures have led to a considerable reduction in processing times, supported by 75 dedicated case managers. Despite these advancements, ASIC's legal action emphasizes the need for accountability and resource allocation to ensure member claims are handled effectively.
Moving forward, the case underscores the importance of rigorous compliance and customer service standards within the superannuation sector. For consumers, the outcome of ASIC's legal action will be pivotal in understanding how super funds can be held accountable for delays and in ensuring that similar issues are mitigated in the future.
