Civil proceedings against Statewide Super on false or misleading charges

4 March 2021
| By Jassmyn |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has for the second time in a month commenced civil penalty proceedings against a superannuation fund for false or misleading representations, this time against Statewide Superannuation.

In an announcement ASIC said the false or misleading representations were over insurance cover held by members of Statewide Superannuation Trust.

ASIC alleged that from May 2017 to June 2010 Statewide:

  • Sent annual statements and warning letters to approximately 12,500 fund members, representing the held insurance cover at a time when those members did not have cover under a Statewide insurance policy; and
  • Deducted monthly insurance premiums (worth a total of approximately $1,500,000) from superannuation accounts of certain Fund members when those members did not have cover under a Statewide insurance policy.

The corporate regulator said the fund breached its obligations as an Australian financial services license holder to act efficiently, honestly and fairly and to comply with financial services laws.

The fund, ASIC said, failed to report these breaches to ASIC within 10 business days.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 11 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 11 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 12 hours ago