The Federal Court has found Telstra Super, now known as Tetra Servicing Pty Ltd, failed to comply with its internal dispute resolution procedures, marking the first enforcement action under the regime, ASIC has confirmed.
On 30 April 2026, the Court determined the fund failed to respond to about one third of complaints lodged between 22 October 2021 and 13 January 2023 within the mandatory 45-day timeframe.
In roughly 30 per cent of those cases, responses were issued more than 100 days after receipt.
Findings also showed that, in some instances, the fund did not explain delays and failed to inform complainants of their right to escalate matters to the Australian Financial Complaints Authority (AFCA), according to ASIC.
The Court stopped short of concluding that the trustee breached its broader obligation to deliver services efficiently, honestly and fairly, and did not find a failure to adequately resource its dispute resolution process.
ASIC deputy chair Sarah Court said the scale of failures was unacceptable, with members left without clarity as delays mounted.
“This outcome sends a clear message that compliance with mandatory internal dispute resolution standards is not optional, but a legal obligation.”
“Financial service providers must invest in robust systems and devote adequate resources to ensure complaints are managed promptly and fairly. This protects consumers from harm and underpins trust in the superannuation system.”
The case represents the first proceedings brought by ASIC under internal dispute resolution requirements introduced in October 2021, which mandate that most complaints be addressed within 45 days.
“This case provides useful guidance and confirms the enforceability of these obligations which are designed to uplift the behaviour of the financial services sector and ensure that consumer protection standards are upheld across the board,” Court said.
Justice Penelope Neskovcin, referencing ASIC’s rules, emphasised that “timeliness is central to effective complaint management”.
Addressing the adequacy of delay explanations, her Honour stated: “It was not sufficient…for the IDR delay notifications issued by Telstra Super to merely state that ‘the investigation into the cause of your complaint is ongoing’, or words to that effect.”
“This statement is an incident of the circumstance that the investigation into the complaint was incomplete and was not a ‘reason’ for the delay in providing an IDR response.”
At the time, Telstra Super was trustee of a fund with 85,000 members and more than $27 billion in assets under management as at 30 June 2025.
The fund officially completed its merger with Aware Super on 30 April 2026, with members transferred across and balances automatically consolidated as part of the successor fund transfer.
