ASIC, ASFA spar over super fund trustees ‘not knowing’ their business

ASIC chair Joe Longo has torched the superannuation sector, branding it the "poster child" for what can and does goes wrong when governance implodes, while accusing directors of "not knowing" their business.

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In a speech at the Australian Institute of Company Directors Australian Governance Summit, Longo pointed to AustralianSuper's alleged delayed processing of nearly 7000 death benefit claims and its failure to merge multiple accounts, Aware Super charging fees for no service, Westpac/BT incorrectly charging insurance commissions to members, and Colonial First State misleading members as examples of funds not knowing their business.

"At the heart of this issue is leadership that doesn't have a grip on the fund's data, systems and processes - and the customers who suffer for it," Longo said.