ASIC's allegations include Mercer Super's failure to report serious issues such as charging insurance premiums to deceased members, creating member accounts without default insurance cover, and not processing updates to member information. These issues reportedly occurred between October 2021 and September 2024, highlighting a prolonged period of alleged non-compliance.
Furthermore, ASIC claims that Mercer Super provided false or misleading information in reports to the regulator, understating the number of members affected by these issues. Such conduct, if proven, represents a significant breach of trust and regulatory obligations.
ASIC Deputy Chair Sarah Court emphasised the gravity of these allegations, stating that they reflect a pattern of longstanding and systemic failure by Mercer Super to comply with the law. She highlighted that these are not merely technical breaches but demonstrate a lack of care for customers, potentially putting more members at risk.
In response, Mercer Super has acknowledged the court action and is reviewing ASIC's claims. The fund noted that the matter relates to breach reporting obligations introduced by ASIC in late 2021 and has cooperated with the regulator during the investigation.
For business owners, HR managers, CFOs, and company directors, this case serves as a stark reminder of the importance of due diligence when selecting superannuation and insurance providers. Ensuring that chosen partners adhere to regulatory standards and maintain transparent practices is essential to safeguard employees' financial security and uphold corporate compliance.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
