Finance
Aussie suburbs with the largest superannuation losses from collapsed funds: ‘Still unaware’
There are still thousands of Australians who have lost retirement savings in their superannuation accounts that likely don’t realise. The Australian securities regulator is urging people to double check their account to make sure you’re not impacted by the high-profile collapse of two investment funds.
Some 12,000 Aussies had their superannuation funds switched into Shield and First Guardian. But years later about 9,000 still haven’t made an official complaint with the financial ombudsman, with only about 3,000 seeking compensation so far.
“In our view that’s not enough,” ASIC Commissioner Alan Kirkland told Yahoo Finance.
“We suspect a lot of people are still unaware.”
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The Australian Securities and Investments Commission (ASIC) has shared postcode data with Yahoo Finance, showing the suburbs with the worst loses stemming from the $1 billion disaster.
Of the top postcodes across the country, four are in Queensland – 4740 Mackay, 4350 Toowoomba, 4670 Bundaberg and 4209 Coomera Pimpama.
Four are in Victoria – 3029 Truganina, 3064 Craigieburn, 3030 Werribee/Hoppers Crossing and 3977 Cranbourne/Cranbourne East/Cranbourne North.
While two others are in Western Australia – 6112 Armadale and 6171 Baldivis.
“Queensland, Victoria and WA are over represented,” Kirkland said.
“But really what we’re trying to say with releasing this data is that there are people who are affected by this in every part of the country.”
The top postcodes for each Australian jurisdiction
|
NSW |
2259 |
Wyong · Tuggerah · Lake Munmorah. |
|
VIC |
3977 |
Cranbourne · Cranbourne North · Cranbourne East |
|
QLD |
4740 |
Mackay · North Mackay · West Mackay |
|
SA |
5114 |
Smithfield · Craigmore · Blakeview |
|
WA |
6112 |
Armadale · Piara Waters · Harrisdale |
|
TAS |
7250 |
Launceston · Riverside · Newstead |
|
NT |
0830 |
Palmerston City · Durack · Gray |
|
ACT |
2620 |
Queanbeyan · Googong · Karabar |
Aussies urged to reach out to their superannuation fund
Many people may still not realise they were invested in Shield and First Guardian, because the funds sat behind well-known platforms or financial advisers. So if you happen to be in one of these postcodes and have not looked at your super in a few years, it is really worth checking, he said.
“If they’re not sure weather they invested in Shield or First Guardian they should reach out to the superannuation fund and ask about that,” Kirkland urged.
ASIC has conducted about a dozen “waves of communication” to affected account holders and seen more people come forward in recent months after a deadline to file a complaint with the Australian Financial Complaints Authority (AFCA) was pushed back in March.
As liquidators continue to trace and sift through the underlying assets, particularly in the case of Shield, ASIC expects some value to be attached and ultimately distributed to account holders.
But the regulator is warning that compensation outcomes are not automatic and people need to take action.
“Don’t be complacent about the fact there’s not currently a deadline. At some point in all likelihood there will be, and the best thing you can do to protect yourself is get a complaint in now,” Kirkland said.
So far, more than $420 million in payments have been secured for affected investors.
For those who discover they have lost money, the first thing ASIC is encouraging people to do is visit takeyoursuperback.com to better understand your rights and options and how to make a complaint.
Lead victim facing court battle after losing $370,000
Melinda Kee was among those who lost their retirement nest egg in the collapsed funds. She has since become one of the leading advocates for other victims, working closely with regulators and the government as it introduces new laws to mitigate future disasters.
She was among the earliest cases to be determined by AFCA but this month has been dragged into litigation against the financial ombudsman by ASX-listed Interprac Financial which was closely linked to the collapsed funds.
It has challenged AFCA, disputing certain elements of how it judged her case and its criticism of the financial advice she received.
“This raises serious questions about the integrity of the AFCA system and whether ordinary Australians can truly rely on a dispute resolution process that financial firms are required to sign up to, only for victims to then be dragged into Federal Court litigation after winning,” she told Yahoo Finance.
“I believe Australians and the financial industry should be outraged by this.”
Her lawyer Callun Blurton said the case could slow down the process of other victims receiving compensation claims against InterPrac. In November, ASIC took action against Interprac alleging its authorised representatives advised around 6,843 clients to invest around $677 million of their superannuation into Shield and First Guardian.
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