Tower Australia has provided undertakings to the Australian Securities and Investments Commission (ASIC) regarding investments in its FAI Personal Superannuation Plan after a review found investors may have received faulty information in their annual statements from as long ago as 1989. A computer glitch was the cause.

Tower has also agreed to repay any shortfall, plus interest, to investors who have fully redeemed their investments, and has agreed to correct the entitlements of investors who have partially redeemed their investments in the product.

Last year ASIC discovered that investors of Tower’s Blue Ribbon products had been underpaid for their investments. The Federal Court ordered Tower to repay the investors. Some investors had faulty information printed in their statements, while others received the wrong amounts on redeemed investments.

Tower says the cost of repaying policyholders is about $4.9 million – $2 million to investors who have redeemed their investments and $2.9 million to adjust the accounts of existing investors. It says fixing the computer error will cost another $800,000.