ASIC

The Federal Court has imposed a penalty of $10.5 million against Active Super for greenwashing misconduct. ‘This is a significant penalty that sends a strong message to companies making sustainable investment claims that those claims need to reflect the true position,’ ASIC Deputy Chair Sarah Court said. Check the first comment to read more. #Superannuation #Greenwashing

Payday lenders may be breaching consumer protection laws. Our review found that some lenders who provide small amount credit contracts may be attempting to move vulnerable consumers into contracts with fewer protections. Commissioner Alan Kirkland said, ‘Consumers who access these products are often financially vulnerable. That’s why people who use small amount credit contracts are subject to additional protections.’ As part of our enforcement priorities, we will continue to investigate business models designed to avoid consumer credit protections. Check the first comment to read more.

We are suing FIIG Securities Limited for systemic and prolonged cybersecurity failures. FIIG allegedly failed to have adequate cybersecurity measures for more than four years, according to documents filed by ASIC in the Federal Court. This enabled the theft of approximately 385GB of confidential data, with some 18,000 clients notified that their personal information may have been compromised. We allege that from March 2019 to 8 June 2023, FIIG failed to take the appropriate steps, as is required by an Australian Financial Services licensee, to ensure it had adequate cyber risk management systems in place. ASIC Chair Joe Longo said, ‘Cybersecurity isn’t a set and forget matter. All companies need to proactively and regularly check the adequacy of their cybersecurity measures and follow the advice of the Australian Signals Directorate’s Australian Cyber Security Centre.’ Check the first comment to read more. #cybersecurity

Speaking at the Australian Institute of Company Directors Governance Summit, Chair Joe Longo highlighted that in spite of the current tumultuous times and the many changes they bring, the fundamental duties and expectations of directors have not changed. Here are Joe’s views on what needs to change and what needs to stay the same for directors to ensure a culture of compliance, creativity, and profitability: #AGS25

We are suing AustralianSuper, the trustee of Australia’s largest superannuation fund, over delayed processing of nearly 7,000 death benefit claims. We allege that between 1 July 2019 and 18 October 2024, AustralianSuper has: • taken between four months and four years from the date the claim form was returned to assess at least 6,897 death benefit claims • failed to pay member's benefits as soon as practicable after the member’s death in respect of at least 752 members; and • in 254 cases, taken between 15 to 213 days to provide the claim form. Our work on member services will continue with the release of the death benefits report in coming weeks. Check the first comment to read more. #Superannuation #ConsumerProtection #FinancialServices

Claire Mather, Acting Corporate Counsel, Corporate Legal Services. has been awarded ASIC’s Women in Leadership Award. Over the past two years, Claire has taken on new challenges, including leading ASIC’s employment law function and building a strong team from the ground up. She has led our response to complex litigation and developed new approaches to supporting witnesses in legal proceedings. She is also a mentor and role model, known for her willingness to share knowledge, support colleagues, and help others develop their skills. On receiving the award, Claire said: "This award is recognition of all of the fantastic female leaders who I have had the privilege to work with over my 10 years at ASIC. Women at every level and across the breadth of our organisation have been incredible role models and inspired me on an everyday basis in the important work we do at ASIC." Congratulations, Claire. #iwd #womeninleadership

Allianz and AWP Fined $16.8M for Misleading Consumers The Supreme Court of NSW has convicted Allianz Australia and AWP Australia for making false or misleading statements about travel insurance. Allianz was fined $13.5M, AWP $3.3M. Between 2016 and 2018, they misrepresented coverage details online, failing to disclose key limits and exclusions. ASIC pursued the case to protect consumers from buying policies with less coverage than advertised. In his judgement, Justice Rothman noted ‘… it is important that corporations take the steps at the highest level to ensure that proper processes are in place which prevent breaches of this kind….these breaches were essentially caused by a desire not to expend the necessary monies to ensure proper oversight of that which is published by the company'. Allianz and AWP will also cover ASIC’s investigation costs. #Insurance #ConsumerProtection

The latest issue of the ASIC enforcement and regulatory update is now live! The update revealed over 10,000 investment scam websites and online advertisements have been shut down by ASIC. Here are more highlights of our #enforcement and #regulatory outcomes.

We're calling for industry insights on the opportunities and risks emerging from shifts in the dynamics between public and private markets ASIC has communicated its preliminary views on key opportunities and risks emerging from shifts in capital markets and called for insights and actionable ideas for us to consider on key questions as part of a discussion paper released today. Key areas of focus in our paper include: The future of Australia’s public equity markets The implications of the significant growth in private markets for market efficiency and confidence The critical importance of superannuation in Australia's economy and, as a driving force in markets Submit your feedback by 28 April 2025 To read the full paper, see our link in the comments #PrivateMarkets #PublicMarkets

Today, the Federal Court has sent a strong message to the superannuation industry: trustees must act in the best financial interests of their members. AustralianSuper, the trustee of Australia’s largest super fund, has been fined $27 million after failing to merge multiple member accounts, leading to $69 million in unnecessary fees and lost investment earnings for approximately 90,000 members. Justice Hespe’s judgment is clear: "AustralianSuper’s failures to comply with s 108A for almost nine years after the section came into effect, to identify its non-compliance and to take steps to remedy that non-compliance were systemic failings and as explained above, were the result of failing to have appropriate systems and processes in place. The failures should not have happened. The failures are serious and highly concerning." ASIC Deputy Chair Sarah Court reinforced this, stating: “This penalty reflects the severity of the misconduct by Australia’s largest superannuation fund which betrayed the trust of its members and did not act in their best financial interests.” Superannuation is the foundation of financial security for millions of Australians, and fund trustees must be held accountable when they fail to meet their obligations. ASIC will continue to take strong action to protect consumers and ensure they receive the service they deserve. What can consumers do? If you have multiple super accounts, check our Moneysmart site for guidance on consolidation. #Superannuation #ConsumerProtection #FinancialServices