The Australian Securities and Investments Commission has filed Federal Court proceedings against Sydney-based Colonial First State Investments Ltd., alleging "misleading or deceptive communications" with individual investors in CFSIL's FirstChoice Superannuation Trust.
Communications by CFSIL with 12,911 participants from March 2014 to August 2016 resulted in 8,605 remaining in the firm's high-cost FirstChoice Fund, instead of defaulting into the low-cost MySuper retirement plan that all industry and retail super funds must offer by law, ASIC said Tuesday in a news release.
FirstChoice Fund assets could not be learned. FirstChoice Superannuation Trust's has A$80.3 billion ($53.3 billion) in assets.
ASIC said the communications amounted to breaches of CFSIL's obligations to ensure that its financial services license-related activities were provided "efficiently, honestly and fairly," and complied with financial services laws.
The regulator has called for financial penalties. Fines will be determined by the court.
CFSIL is "currently reviewing SIC's claim and will provide any update as required," a separate news release said Tuesday.