Australasian financial services group Tower is likely to have to pay about $1 million in compensation for a series of administration errors made by its subsidiary Tower Superannuation.

The Australian Securities and Investments Commission has accepted an enforceable undertaking from Tower Super – the approved trustee of Superb Master Trust – and its fund administrator Tower Risk and Investment Management (TRIM) of a number of administrative errors.

Superb ceased operating in 2004 and has no current members. Tower Super told the regulator that the errors made by TRIM meant that certain funds weren’t correctly applied to members’ accounts. Some members have also been charged incorrect fees.

The errors mean some Superb members may have received incorrect information about their account balances and earnings distributed to their accounts. Some members may also not have received payments when withdrawing from their accounts.

As part of the undertaking Tower Super is required to notify and compensate all members affected by the errors. It’s also required to appoint an independent compliance consultant to ensure all members are adequately compensated. 

Tower Australia spokesman Rod Metcalfe told Sunrise Exchange News the company discovered the errors about 12 months ago and its now “well on its way to fixing the situation”.

“We have been informed by the regulator that we should contact all customers affected by the problems by the end of April.”