The Australian Securities and Investment Commission (Asic) has started civil proceedings against superannuation trustee business OnePath.
According to the regulator, the firm “incorrectly charged” more than 18,000 members when it was not entitled to do so.
Asic alleges that financial advice fees of over A$4m (£2.1m, $2.8m, €2.5m) were charged, although no service was provided.
Sarah Court, deputy chair at the watchdog, said: “Superannuation is important for the future financial security of Australians.
“Consumers must be able to trust they are being charged fees correctly by their superannuation providers. Asic’s case alleges that OnePath failed to do so in this case.”
The case
The Australian regulator claims that from 15 December 2015, financial advice fees of A$3.8m were charged to 16,210 members who had been de-linked from their employer-sponsored superannuation plans.
These members were sent letters and annual statement until May 2020, which failed to inform them of “their rights regarding adviser services fees, including their right to terminate their fees”.
Additionally, between December 2015 and January 2019, OnePath incorrectly charged advisory services fees of around A$502,667 to more than 2,500 members who did not have a linked plan adviser.
Annual statements were sent to the latter group as well until October 2019, claiming the firm was “entitled to deduct adviser service fees from their accounts and that they were obliged to pay”.
The regulator said: “Asic claims that OnePath made false and misleading representations about its right to continue charging fees to these members, engaged in misleading or deceptive conduct and breached its obligations as a financial services licensee to provide services efficiently, honestly and fairly.”
Asic is now seeking declarations, fines and other orders from the federal court.
