What happens if my super fund is found to have contravened the law?

In Plain English

If your super fund breaks the law, several things can happen. The Superannuation Industry (Supervision) Act 1993 outlines different actions that can be taken depending on the type and seriousness of the contravention.

  • Infringement Notice: For some less serious breaches, the fund might get an infringement notice, which is like a fine. Paying this can resolve the issue without going to court.
  • Directions from the Regulator: The Australian Prudential Regulation Authority (APRA) can instruct the fund to fix the problem or stop doing something that's causing the breach.
  • Investigations: APRA can investigate the fund to figure out what went wrong and how to fix it.
  • Court Orders: The court can order the fund to compensate for any losses caused by the breach, or even impose civil penalties.
  • Enforceable Undertakings: The fund can make a formal promise to APRA to fix the issues. If they break this promise, APRA can go to court to enforce it.
  • Disqualification: An individual can be disqualified from being a trustee or responsible officer of a superannuation entity.

Detailed Explanation

The Superannuation Industry (Supervision) Act 1993 provides a framework for dealing with contraventions of superannuation law. Here's a breakdown of the potential consequences:

This range of actions allows the regulator and the courts to respond appropriately to different types of contraventions, aiming to protect the interests of superannuation fund members and ensure the integrity of the superannuation system.