Former super fund execs in trouble with ASIC

On Monday, ASIC announced that two former senior executives of Statewide Superannuation have been charged with dishonesty offences in relation to their procurement of services.

The regulator alleges that former Statewide CFO Grant David Eastwood dishonestly used his position in the procurement of a firm, Cosight (formerly known as Fintrix Systems), to provide services to Statewide.

ASIC also alleges that Statewide’s former CRO, Kieran Francis Netting, dishonestly used his position regarding a review he conducted connected to the appointment of Cosight to deliver services to Statewide.

Mr Eastwood commenced as Statewide CFO on 16 February 2016 and Mr Netting as CRO on 13 February 2017, but both men’s employment was terminated by the super fund in January 2020 following an internal investigation. Statewide then reported their conduct to ASIC.

Both Mr Eastwood and Mr Netting appeared before the Adelaide Magistrates’ Court on 9 December 2022, charged with six counts and one count, respectively, of using their positions dishonestly for the benefit of another, contrary to s 184(2)(a) and (b) of the Corporations Act.

The Commonwealth Director of Public Prosecutions is prosecuting the matter following a referral by ASIC. The matter has been adjourned to 28 February 2023.

The merger between Statewide Super and Hostplus was finalised in April this year, resulting in over $81 billion in funds under management and 1.5 million members at the time, after the two funds signed a successor fund transfer deed late last year.