Commonwealth Bank of Australia breached pension rules, inquiry hears
Commonwealth Bank of Australia (CBA) “breached a legislative provision” when it failed to transfer 15,000 pension customers to a low-cost product, an inquiry into financial sector conduct heard on Tuesday.
Documents read at the Royal Commission showed the bank failed to comply with a law introduced in 2014 to provide low-cost retirement funds – dubbed superannuation funds – to some clients who did not choose a specific retirement savings product.
Michael Hodge, the barrister assisting the commission, said that as such, the pension unit of the country’s largest bank had breached section 29WA of the Superannuation Act.
Linda Elkins, executive general manager of CBA’s Colonial First State unit, said some pension fund clients were not transferred to low-fee products because the company’s computer systems could not support the move.
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