The Superannuation Consumers’ Centre (SCC) has welcomed a funding injection stemming from regulatory action, after ANZ and the Commonwealth Bank agreed to each pay $1.25 million to the group as part of an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC).
The funding would see the Centre, which sought to advance and protect the interests of low and middle-income super members, become fully operational for the first time.
SCC chair, Rod Stowe, said that it showed the benefits of EUs for consumers.
“It is fitting that this funding has become available through regulatory action on mis-selling of superannuation products,” he said.
“This is an excellent example of the way enforceable undertakings can improve consumer outcomes. ASIC has ensured that the banks change their behaviour and consumers win through funding for a specialist organisation that will advocate for industry reforms to stop this kind of behaviour in the future.”
The EU followed a finding that the banks mis-sold superannuation products and would also see the two firms change how they sold super products.
