ASIC has recently written to superannuation trustees urging them to strengthen anti-scam practices, or risk ex”posing members to harm.”
The open letter, which is reportedly signed by ASIC Commissioner Simone Constant, outlines their guidance for superannuation trustees in “preventing, detecting and responding to scams and fraud activity.”
As explained in the announcement from ASIC, superannuation trustees have a key role to play in “minimizing the risk of scam and fraud risks to members, given they are the custodians of the second largest asset for many Australians.”
As stated in the update from ASIC, scammers are now employing increasingly sophisticated tactics to manipulate superannuation members, and “taking prompt and proactive steps to monitor and address scam activity is vital.”
Superannuation trustees are described as being the “gatekeepers of their members’ money and cannot outsource their obligations to third parties when it comes to protecting their members from scams.”
The Commissioner’s letter reportedly follows an ASIC review of “15 superannuation trustees which found none had an organization-wide scams strategy in place.”
ASIC’s review of the anti-scam practices of superannuation trustees forms part of their ongoing focus “on disrupting investment scams in the broader financial services landscape.”
In 2023, they published Report 761 Scam prevention, detection and response by the four major banks (REP 761) and in 2024, they published Report 790 Anti-scam practices of banks outside the four major banks (REP 790).
As covered, the Australian Securities and Investments Commission (ASIC) is an independent government body that “regulates Australia’s financial services, markets, and corporate sectors.”
ASIC‘s mission is to create a “fair, efficient, and strong financial system for all Australians.”
ASIC’s responsibilities are as follows:
- Regulating financial services: ASIC licenses and monitors financial services businesses to ensure they operate fairly, honestly, and efficiently.
- Protecting consumers: ASIC works to protect consumers and promote financial literacy.
- Promoting investor confidence: ASIC promotes trust and confidence in investors and financial consumers.
- Ensuring fair markets: ASIC ensures that markets are fair, orderly, and transparent.
- Enforcing the law: ASIC enforces the law and takes action against misconduct.
