Australian Securities & Investments Commission (ASIC) Files Lawsuit Against Mercer Super ($70 Billion AUM & 950,000 Members) for Failure to Report Serious Member Services Issues & Inadequate Systems In Place from 2021 to 2024, Cases Include Insurance Premiums Incorrectly Refunded after Members Died, Member Accounts Created Without Default Insurance, Member Information Updates Not Processed by Trustee
19th August | Hong Kong
Australian Securities & Investments Commission (ASIC) has filed a lawsuit against Mercer Super ($70 billion AUM & 950,000 members) for failure to report serious member services issues & inadequate systems in place from 2021 to 2024. The cases include 1) Insurance premiums incorrectly refunded after members died, 2) Member accounts created without default insurance & 3) Member information updates not processed by trustee. ASIC (14/8/25): “ASIC sues Mercer Super alleging systemic failure to report member services investigations. One of Australia’s largest superannuation funds failed to tell ASIC about investigations into serious member services issues, including incorrect insurance premium refunds for dead members, the regulator alleges in new proceedings launched today in the Federal Court. ASIC alleges that between October 2021 and September 2024, Mercer Super had inadequate systems in place to comply with the reportable situations regime, which requires Australian financial services licensees to promptly report ongoing investigations into significant breaches of their core obligations. Examples of these systems failures include, ASIC alleges, Mercer Super failing to report seven investigations at all, and another investigation being reported more than a year late, including investigations into: 1) insurance premiums not being refunded correctly after members had died 2) member accounts not being created with default insurance, and 3) updates to member information not being processed by the trustee. ASIC also alleges Mercer Super provided false or misleading information in reports to ASIC, which understated the number of members who were impacted. ASIC Deputy Chair Sarah Court said the case against Mercer Super was the latest in a series of actions ASIC had taken to drive change in the way trustees serve their customers. Member services failures in the superannuation sector is one of ASIC’s 2025 enforcement priorities. Over the past 12 months, ASIC has sued AustralianSuper and Cbus over alleged failures in handling death benefit and insurance claims. ASIC has also issued 34 death benefit claims recommendations to super trustees and flagged its next phase of work focusing on how trustees respond to customer complaints. While ASIC is reviewing the reportable situation regime to make compliance simpler for licensees, Mercer Super’s alleged conduct falls well below what ASIC expects of a trustee of its size and market position. ASIC is seeking declarations and penalties from the Court. Background – Mercer Super is the seventh largest super fund in Australia with more than 950,000 members and $70 billion in assets under management. Separately, in August 2024, Mercer Super was fined $11.3 million after it admitted making misleading statements about the sustainable nature and characteristics of some of its superannuation investment options. (24-173MR). One of ASIC’s 2025 enforcement priorities is focused on member services failures in the superannuation sector (24-252MR). Late last year, ASIC commenced Federal Court proceedings against United Super Pty Ltd (United Super), the trustee of Cbus, alleging systemic failures in death benefit and TPD insurance claims processing (24-251MR). Earlier this year, ASIC commenced Federal Court action against AustralianSuper Pty Ltd, the trustee of Australia’s largest superannuation fund, alleging delays in the processing of nearly 7,000 death benefit claims (25-034MR). In March 2025, ASIC handed down 34 recommendations to super trustees to improve the way they handle death benefit claims (25-049MR). In a speech in June 2025, ASIC Chair Joe Longo outlined the next phase of ASIC’s work in the superannuation sector will address how trustees learn from and respond to the complaints they receive.”
“ Australian Securities & Investments Commission (ASIC) Files Lawsuit Against Mercer Super ($70 Billion AUM & 950,000 Members) for Failure to Report Serious Member Services Issues & Inadequate Systems In Place from 2021 to 2024, Cases Include Insurance Premiums Incorrectly Refunded after Members Died, Member Accounts Created Without Default Insurance, Member Information Updates Not Processed by Trustee “
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Australian Securities & Investments Commission (ASIC) Files Lawsuit Against Mercer Super ($70 Billion AUM & 950,000 Members) for Failure to Report Serious Member Services Issues & Inadequate Systems In Place from 2021 to 2024, Cases Include Insurance Premiums Incorrectly Refunded after Members Died, Member Accounts Created Without Default Insurance, Member Information Updates Not Processed by Trustee
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