The Australian Securities and Investments Commission (ASIC) has secured a $5 million court order against OnePath Custodians Pty Ltd.。

The Federal Court has ordered the pension custodian to pay a $5 million fine for making false or misleading statements regarding the right to continue charging fees and for failing to provide services to members efficiently, honestly and fairly due to its misleading behavior and withholding fees without the right to withhold fees。

It was the second non-service-related penalty judgment ASIC received in a week after Mercer Financial Advice was penalized $12 million for charging customers fees it was not entitled to.。

The court found that between December 2015 and November 2021, OnePath made false or misleading representations to members of the pension product "Integra Super" about the fees for consultancy services and deducted from members $3.8 million in fees for consultancy services they did not receive.。

OnePath tells members they must pay for the advice of a "program advisor," even if the member has been transferred to a division of Integra Super where they are not entitled to the advice service.。

OnePath also misled members, claiming:

• The member has agreed to the fee when the plan advisor has agreed with the member's former employer on the fee;
• Although the member has the right to cancel the fee himself, the negotiation of the fee is a matter between the member's former employer and the plan advisor。

During that time, OnePath sent letters to about 766 members and an annual statement to about 15,962 members that contained false or misleading statements.。

OnePath admitted its actions and agreed to a $5 million penalty.。The court also ordered OnePath to post a notice of the breach on its website.。