…You cannot outsource your obligations…<\/p><\/blockquote>\n
ASIC Deputy Chair Sarah Court<\/strong> said Cbus\u2019s failures \u201c\u2026needlessly exacerbated the distress\u201d of people already facing grief or life-changing injury.<\/p>\n \u201cThousands of Australians suffered real and avoidable harm because of long delays and systemic failures in the way Cbus handled important and sensitive insurance claims,\u201d she said. \u201cYou cannot outsource your obligations.\u201d<\/p>\n Court also said Cbus had been alerted to rising claim volumes and member complaints but failed to act, and added that claims handling remains an ASIC enforcement priority.<\/p>\n …serious and unacceptable consequences…<\/p><\/blockquote>\n \u201cThis outcome underscores a message to the whole industry to get it right, especially when your members need it most,\u201d Court said.<\/p>\n In his judgment, Justice O\u2019Callaghan<\/strong> said delays in paying benefits had \u201cserious and unacceptable consequences,\u201d citing a case where a widow waited 15 months for a death benefit before speaking publicly, prompting Cbus to investigate and notify ASIC.<\/p>\n He emphasised that as Australia\u2019s ninth-largest fund, with more than $95bn in assets, Cbus should have had robust systems to prevent and correct errors.<\/p>\n The court found United Super breached the Corporations Act by failing to process claims efficiently, maintain accurate data, oversee committees, and properly monitor its administrator. It also failed to report breaches to ASIC on time.<\/p>\n United Super was additionally ordered to contribute $500,000 to ASIC\u2019s legal costs and undertake a compliance program to ensure its systems now meet legal obligations.<\/p>\n![\"Sarah](\"https:\/\/riskinfo.com.au\/news\/files\/2021\/08\/Sarah-Court-e1627963164564.jpg\")
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