ASIC Warns Super Fees Erased Nearly 100% of Some Balances as 11,000 Lost $1 Billion
Updated
Updated · PerthNow · Jul 20
ASIC Warns Super Fees Erased Nearly 100% of Some Balances as 11,000 Lost $1 Billion
3 articles · Updated · PerthNow · Jul 20
Summary
Nearly 100% of one member’s super balance was wiped out by inappropriate fees, prompting ASIC to urge Australians to check their retirement accounts more closely.
ASIC’s review found some trustees missed excessive charges, risky account switching and other warning signs; members in one advice model lost about half their super on average to fees.
Up to $30,000 fee caps were allowed by some trustees, while three had no upper dollar limit on certain percentage-based fees, exposing members to large deductions.
The watchdog said too many trustees prioritized adviser relationships over member protection and warned of deeper scrutiny, public naming and enforcement action.
The warning follows the collapse of Shield and First Guardian, which ASIC estimates cost more than 11,000 Australians about $1 billion; super platforms manage nearly $300 billion and collect $2.2 billion in advice fees.
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$1 Billion in Super Gone: ASIC’s Battle Against Trustee Failures and Urgent Steps for Australians
Overview
In 2025, the collapse of the First Guardian Master Fund and Shield Master Fund was identified as a major system failure, causing devastating losses for thousands of Australians, including 12,000 investors who lost their life savings. In response, ASIC intensified its regulatory efforts, aiming to restore as much lost money as possible to affected investors. ASIC is actively pursuing actions against super trustees and other parties, including recent claims against Equity Trustees. The regulator also highlighted the central role of financial advisers in superannuation switching, signaling a broader push for accountability and stronger oversight to protect Australians' retirement savings.