OnePath will be subject to an independent review of its compliance, as part of an Australian Securities and Investments Commission (ASIC) investigation.

It comes after a significant number of breaches were reported by the parent ANZ Group in relation to life, general insurance, superannuation and funds management activities.

From 2013 to the middle of last year about 1.3 million customers were affected by breaches, requiring refunds and compensation of about $4.5 million, plus rectifications and other remediation of about $49 million.

Some breaches involved failing to act on cheques for insurance claims and refunds that had not been banked within 15 months.

OnePath also failed to provide disclosure documentation for some insurance products.

ANZ did not properly supervise some outsourced functions, including third-party call centres.

The bank has engaged PricewaterhouseCoopers (PWC) to independently review the OnePath subsidiaries’ compliance management framework.

The review will assess the framework’s design and operational effectiveness.

It will also assess processes designed to identify and manage financial services laws, which apply to OnePath companies holding Australian financial services licences.

ANZ has agreed to implement recommendations stemming from the PWC review.

ASIC is separately monitoring rectification of the breaches, because some breaches are yet to be finalised.

ASIC Deputy Chairman Peter Kell says appropriate systems to monitor compliance are essential for banks to meet their licence obligations.

“This is important in maintaining customer trust and confidence in the sector,” he said.