ASIC cracking down on superannuation misconduct in 2024
The regulator puts funds on notice to make sure they're doing the right thing by members.
The Australian Securities & Investments Commission (ASIC) has warned super funds to make sure they're behaving themselves, saying fund misconduct will remain a regulatory focus into 2024.
"The July to September quarter saw ASIC achieve strong results in court and file significant matters that go toward our ongoing work to protect consumers," ASIC chair Joe Longo said. "Our focus on the best interests of members in the superannuation sector is part of our continuing work to make the financial system fair for all Australians."
Court actions in the superannuation sector led by ASIC this year included:
- Action against Australian Super for allegedly failing to address multiple member account issues
- Action against Active Super and Vanguard investments for alleged "greenswashing", where investments are inappropriately promoted as environmentally friendly
"We know cost-of-living pressures are making life difficult for many Australians," Longo said. "Protecting consumers experiencing financial hardship has been a particular focus for ASIC this quarter in our enforcement and regulatory actions."
The average Australian thinks that they would need $641,223 to retire comfortably , recent Finder research shows. However, the average male aged 60-64 has just $402,838 in super, while for women in the same age bracket it's an even lower $318,203.
Almost 1 in 4 Australians (23%) don't think they'll have enough in their super to fund their retirement. That's a potential 4.6 million people without enough to get by once they finish working.
Even more disturbingly, 27% of Australians don't know if their super will be adequate or not.
Super can seem daunting, but there are easy steps you can take to improve your future. Make sure you consolidate if you have multiple super funds, and consider making extra contributions if you can afford it.
Compare super funds and see if you're getting the best results to fund you in retirement.