The Federal Court has found Diversa Trustees acted efficiently, honestly and fairly and took reasonable steps to ensure its representatives complied with financial services laws, culminating legal proceedings that commenced in 2021.
ASIC had previously alleged that Diversa contravened the law between 13 March 2019 and 18 December 2020 by allowing financial adviser Nizi Bhandari and Australian Dealer Group (ADG), which operated a website called ‘Australian Super Finder’, to sign consumers up to its YourChoice Super product.
Through ‘Australian Super Finder’, a consumer could request a search for lost super and ADG offered to consolidate consumers’ ‘found’ super into a single fund.
With these proceedings, the corporate regulator alleged Diversa and the OneVue Group (which provided many day-to-day functions for the YourChoice Super fund) knew or should have known that the Australian Super Finder business was engaging in concerning behaviour and was at risk of breaking the law.
Additionally, it alleged that the OneVue Group paid approximately $7.5 million in commissions on behalf of Diversa.
In the Federal Court today, it found that Diversa “did not fail to act efficiently, honestly and fairly or fail to take reasonable steps to ensure its representatives complied with financial services laws”.
“ASIC pursued this case as part of our focus on trustee oversight of advice, which, if not done properly, can enable inappropriate behaviour by service providers and others,” said ASIC deputy chair, Sarah Court said.
“ASIC will continue to work with superannuation trustees emphasising the importance of risk management when dealing with third-party providers and others.”
ASIC is carefully reviewing the judgment, it added.
Bhandari was permanently banned by ASIC from providing financial services and engaging in credit activities in March 2021. He also faces criminal charges in the Magistrates’ Court of Victoria. ASIC also cancelled ADG’s Australian financial services licence.
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.