The Australian Securities and Investments Commission (ASIC) has for the second time in a month commenced civil penalty proceedings against a superannuation fund for false or misleading representations, this time against Statewide Superannuation.
In an announcement ASIC said the false or misleading representations were over insurance cover held by members of Statewide Superannuation Trust.
ASIC alleged that from May 2017 to June 2010 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.
The corporate regulator said the fund breached its obligations as an Australian financial services license holder to act efficiently, honestly and fairly and to comply with financial services laws.
The fund, ASIC said, failed to report these breaches to ASIC within 10 business days.