Dear Australian Securities and Investments Commission,

ASIC has been given a directive by the Minister responsible for ASIC to investigate the non-payment or delayed payment of life insurance products in repose to the CommInsure scandal reported by Fairfax Media.

This is what the Assistant Treasurer, the Hon Kelly O’Dwyer MP, said to Michael Brissenden of the ABC on 8 March 2016:

“We’re getting ASIC to do an investigation as to whether those practices that have been raised in relation to CommInsure are more widespread; whether there is a broader systemic issue with the industry”.

Life insurance products can be obtained either via a life insurance company or via a superannuation fund.

ASIC has been provided with a document that might be described as a “group death benefit policy” document dated 20 November 1974 that added Regulation 30A to the provisions of an occupational pension scheme established by a Trust Deed executed on the 23 December 1913 in the State of South Australia. Regulation 30A provides a death benefit to widows in the form of a survivorship pension following the death of their late husband.

It is important to note that a copy of this document that forms part of the governing rules of the 1913 Fund was not lodged with APRA as required by Section 29L of the Superannuation Industry (Supervision) Act 1993. The earliest Deed lodged with APRA was dated 26 August 1986.

In 1974 the name of this fund was The Provident Fund, however in 1982 the name of the fund was changed to the Elders IXL Superannuation Fund. This fund was more recently known as the AusBev Superannuation Fund.

Since 20 January 2014 the Trust Estate of this occupational pension scheme has been under the control of subsidiary companies of the National Australia Bank.

The death benefits to widows are not being paid by the National Australia Bank. The defined benefit pension scheme was closed to new members on the 30 November 1997, so there will be widows alive until 2060 to 2070 who have a prima facie right to receive a survivorship pension pursuant to the provisions of Regulation 30A.

As part of its investigation order by the responsible Minister, ASIC should have sought to obtain a copy of any Deed of Variation that purports to repeal, revoke or delete Regulation 30A.

ASIC should be able to obtain a copy of such a document from either APRA or from PFS Nominees Pty Ltd or Nulis Nominees (Australia) Ltd which are subsidiary companies of the National Australia Bank.

The document I seek is a copy of any Deed of Variation or other instrument that purports to repeal, revoke or delete Regulation 30A.

Yours faithfully,

Phillip Sweeney