Avanteos has pleaded guilty to 18 criminal charges and faces a hefty fine for failing to update defective disclosure statements and continuing to charge fees to deceased superannuation members.
At the time of the offending, Avanteos was a subsidiary of the Commonwealth Bank of Australia.
According to ASIC, despite receiving legal advice in 2016 that it did not have authority to deduct fees from superannuation members after their death, Avanteos did not update disclosure statements on 18 products and continued deducting fees until May 2018.
As a result of the offending, 499 deceased members with funds in these superannuation products were charged almost $700,000 in fees by Avanteos when it was not entitled to do so.
Avanteos has remediated all affected customers since.
The 18 charges were filed on Wednesday in the County Court, Melbourne, and the matter is next listed for sentencing on 1 June 2022.
ASIC noted that the maximum penalty for each offence, which occurred between 2016 and 2018, is $180,000.
