ANZ foots compensation bill

ANZ will compensate consumers a total of $10.5 million as a result of OnePath compliance breaches.

According to ASIC, ANZ's wealth, insurance and advice arm, OnePath, failed to process superannuation contributions and manage lost inactive member balances correctly for about 160,000 customers.

The corporate regulator first announced in March 2016 that about 1.3 million affected OnePath customers between 2013 to mid-2015 required refunds and compensation of $4.5 million, and remediation of $49 million.

Some of the breaches include OnePath failing to disclose documentation for some insurance products; insufficiently supervising some outsourced functions (including third-party call centres); and having inadequate systems or processes to ensure compliance.

In one instance, OnePath allocated 1422 superannuation members with $28.7 million in contributions to the incorrect super account for a period of up to 12 months.

Another was failing to take action on 21,000 cheques for insurance claims proceeds, super benefits and premium refunds sent to customers that were not banked within a 15-month timeframe.

ASIC said its independent review of OnePath's compliance functions, which sought to address life and general insurance, superannuation, and funds management activities is now finalised.

The total $10.5 million compensation ANZ will pay is a result of ASIC separately monitoring the rectification of the breaches.

Read more: OnePathANZASIC
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