Retirement
Super fund manager in court for misleading members
Colonial First State Investments is again the subject of legal action, with the filing of new civil proceedings underway in the Federal Court.
Super fund manager in court for misleading members
Colonial First State Investments is again the subject of legal action, with the filing of new civil proceedings underway in the Federal Court.
ASIC has announced that it is taking action against Colonial First State Investments Ltd (CFSIL), both in its own capacity and as trustee for Colonial First State FirstChoice Superannuation Trust (FirstChoice Fund).
It comes after a class action was filed on behalf of super fund members by Shine Lawyers against Colonial First State earlier this year for erosion of accounts by excessive insurance premiums.
The new proceedings centre around alleged breaches of both the ASIC Act and the Corporations Act and relate to allegations of misleading or deceptive communications with FirstChoice Fund members.
Having commenced the Federal Court proceedings, ASIC is alleging that between March 2014 and August 2016, CFSIL communicated with members of the FirstChoice Fund in a misleading or deceptive manner around the provision of investment directions to stay within CFSIL’s FirstChoice Fund rather than transition to MySuper.
Since the Australian government passed amendments to the Superannuation Industry (Supervision) Act 1993 (Cth) in 2012, trustees – including CFSIL – have been required to offer members default “MySuper” superannuation products.
ASIC has outlined that its case focuses on template letters sent to members, and 46 phone calls based off scripts.
The corporate regulator is also alleging that Colonial First State did not provide a “general advice warning” during phone calls, in breach of the Corporations Act.
“It is notable that a total of 8,605 members provided an investment direction keeping them in their existing product.”
ASIC is arguing that Colonial First State also breached its obligations to members by not ensuring it was doing all things necessary to ensure that the financial services covered by its licence were provided efficiently, honestly and fairly.
According to ASIC, the proceedings will be listed for a first case management conference on a date yet to be fixed with the regulator seeking declarations of breaches and the imposition of civil penalties inclusive of a monetary figure.
The Commonwealth Bank of Australia has acknowledged the civil penalty claim against CFSIL.
CFSIL has outlined that it is currently reviewing ASIC's claim and will provide any update as required.
RELATED ARTICLES
About the author
About the author
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
