Federal Court Penalises Statewide $4m For Misleading Information
Updated: Aug 5
Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | February 2022
Statewide, a high-performing industry Superannuation fund, has received $4 million in combined penalties after providing misleading information to their members. Over 14,000 annual statements were sent to 7000 members whose insurance cover had already lapsed.
Many members were affected by this conduct that led them to believe they were covered by insurance, when in fact their accounts were no longer active.
Another contributing factor to the hefty penalty was due to Statewide failing to report the issue to ASIC within 10 days of becoming aware of the issue.
ASIC deputy chair Sarah Court said, “It also overcharged more than $2.5 million in insurance premiums to members who no longer held insurance as part of their superannuation accounts.”
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About the Author
Christopher Hall, AdvDipFP, is the principal financial adviser at Arrow Equities and an Authorised Representative under AFSL 526688. He has completed more than 500 life insurance policy reviews for Australian families, with a specialisation in life risk insurance.
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