ANZ pays the price for OnePath compliance failures

ANZ has been ordered to pay $15 million compensation to 160,000 superannuation customers of its wealth management business.

The compensation is for customers who were affected by breaches in the OnePath group between 2013 and 2016, according to ASIC, the financial services regulator.

ASIC announced in March 2016 that ANZ would have to pay $4.5 million in compensation, but that has now been increased by $10.5 million.

Most of the additional compensation relates to “incorrect processing of superannuation contributions and failure to deal with lost inactive member balances correctly”, ASIC said.

The increase came after ASIC monitored the resolution of some of the OnePath breaches.

“OnePath has contacted the majority of affected customers and finalised the majority of these additional compensation payments,” ASIC said.

“ASIC will continue to monitor the breaches reported to us by ANZ until the matters are resolved, including any remediation where appropriate.”

“Significant number of breaches”

Last year, ANZ agreed to an independent review of OnePath’s compliance functions after ASIC raised concerns about “a significant number of breaches” in OnePath’s life, general insurance, superannuation and funds management activities.

One of the breaches concerned 1,422 superannuation fund members who had $28.7 million in contributions allocated to the incorrect super account for a period up to 12 months.

Customers who have queries about whether they are owed compensation or another form of remediation should contact OnePath on 133 665.