The Australian Securities and Investments Commission (ASIC) has called on super trustees to close gaps in how they deal with issues raised in member complaints.

Its latest review, Report 844, found weak points that could expose members to avoidable harm.

Nearly a quarter of trustees did not regularly check complaints data for systemic issues. Trustees must do this under ASIC’s dispute resolution rules.

Of the 45 trustees reviewed, 24 found fewer than five systemic issues from complaints over two years.

Among these, 14 found none. ASIC sees such low numbers as a possible red flag, mainly where trustees have many complaints or large member bases.

By comparison, the Australian Financial Complaints Authority spotted such issues in the super complaints it handled at almost twice the rate of trustees.

ASIC also took a closer look at a smaller group of trustees. Several were too ready to name members as the root cause of complaints, pointing to what members expected, knew or did wrong.

“Trustees need to look behind the complaint and ask whether poor communication, unclear processes, delays or system failures are driving member dissatisfaction,”

said Simone Constant, Commissioner at ASIC.

Constant said the findings raise serious questions about whether trustees have the systems, culture and governance to spot harm early. Super trustees manage $3.4 trillion in retirement savings for Australians.

ASIC has asked trustees to review the report and act on its advice without delay.

Where trustees fail to act and members are harmed, the regulator said it will weigh the full range of responses open to it.

Featured image: Edited by Fintech News Australia, based on image by sekillerim05 via Magnific.