Research commissioned and published by Industry Super Australia on alleged inducements offered by banks for employers to switch superannuation funds has resulted in an Australian Securities and Investments Commission (ASIC) surveillance operation.
The surveillance initiative has been confirmed during Senate Estimates by ASIC Commissioner, Greg Tanzer, which he said had occurred despite the fact that the ISA research had not actually identified any specifics about breaches having occurred.
“The survey itself did not identify any particular breaches of section 68A (of the Superannuation Industry Supervision Act),” Tanzer said.
“Some of the reported inducements within the way the survey was conditioned may well be actually permitted inducements.”
However, he said after considering the survey results, ASIC had commenced a surveillance project on a number of superannuation entities, including superannuation funds connected with the four major banks referred to in the survey.
“We have issued notices to all those entities to gather information to better understand their processes for engaging with employers and to gather data that may assist us in identifying possible breaches of section 68A,” Tanzer said, adding that “a number of banks were also proactive in bringing forward information to us”.
“Gathering evidence in terms of breach of section 68A is not a very easy exercise,” he said.
“We have also asked industry super but we have also made a general invitation for anybody, given the interest and was engendered by this survey, to come forward with any more specific information about an employer, a particular bank or branch manager or representative of a super fund who is making inducements, because we do see this as a risk area. At this stage, we are still working through that information.”
