ASIC has commenced proceedings in the Federal Court against Statewide Superannuation for false or misleading representations made about the insurance cover held by members of the Statewide Superannuation Trust.
“ASIC alleges that from May 2017 to June 2020, 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,” ASIC said.
ASIC alleges that in making the representations, Statewide breached its obligations as an AFSL holder and failed in its breach reporting obligations. The regulator is seeking declarations, pecuniary penalties, injunctions relating to a remediation program and publication orders.
“Statewide Super acknowledges today’s announcement of the commencement of civil proceedings by the Australian Securities Investments Commission (ASIC),” Statewide said in a statement.
“The proceedings relate to a self-reported insurance administration error. The administration error occurred during a specific period of time and relates to a specific cohort of members. Statewide Super will communicate with and then remediate any affected current and former members as soon as possible and all entitlements will be honoured.”
Statewide said it has “actively sought to co-operate with ASIC at all times”.
Statewide Superannuation are on the APL approved list of Shartru Wealth Management – I wonder how many other AFSL’s have failed with their in house due diligence on this Fund Management..?
But wait – it’s a IT glitch (ha ha )
So their “error” occurred after the Royal Commission. Are they so arrogant or stupid to think that they are immune?
This appears to be outright theft – it is far worse that “fees for no service”, where there was at least a signed client agreement for fees to be paid.
Will the Directors of the Fund be banned, and will all employees of the fund be required to complete an Ethics Exam? If not, why not?