The article examines concerns raised by the Australian Securities and Investments Commission (ASIC) about governance weaknesses in superannuation investment platforms that manage hundreds of billions of dollars in retirement savings.

It explains that platforms—widely used by financial advisers to consolidate superannuation, shares, ETFs and managed funds—are meant to protect members through strict oversight of investments, adviser behaviour and fee structures.However, ASIC’s recent review of six major platform trustees found persistent failures across these responsibilities.

A key issue identified is the lack of effective caps on adviser fees, with some platforms allowing charges as high as $25,000 to $30,000, despite earlier warnings that such limits were excessive.

The article highlights cases where fees consumed an alarming proportion of smaller balances, raising concerns about potential exploitation of vulnerable members.

ASIC also found inadequate monitoring of basic compliance documentation, such as proof that financial advice was properly provided and that advisers were appropriately licensed.In many cases, trustees performed minimal checks, and when audits were conducted, a high proportion revealed problems.Some platforms even had periods with no checks at all.

Further concerns relate to weak detection of suspicious activity patterns, including unusual member inflows or investment behaviour that could signal misconduct.These gaps are linked to broader systemic risks, including those seen in major collapses affecting thousands of Australians’ savings.

The article argues that while platforms can be beneficial for individuals with complex financial needs and access to quality advice, the combination of high fees, conflicts of interest, and poor oversight creates risks for everyday superannuation members.

It urges greater transparency and encourages consumers to critically assess whether platform-based advice is appropriate for their circumstances, particularly by comparing costs and outcomes with lower-cost superannuation options.