Fund trustee Retail Employees Superannuation has been hit with two infringement penalties totalling $37,560 for allegedly making false or misleading insurance representations to members.

The Australian Securities and Investments Commission says the Rest Super trustee inadvertently activated insurance for more than 2000 members in annual statements and emails from June last year to January.

The communications indicated that members held active death, total and permanent disability and/or income protection insurance in the fund.

“However, each of the affected members had previously cancelled, chosen not to receive, lost or otherwise not held insurance cover in the fund,” the commission said.

“In sending both the annual statements and emails … ASIC alleges that Rest made false or misleading representations that Rest had a right to activate insurance cover for the member and, as a result, deduct insurance premiums from the member’s superannuation account, in circumstances where Rest had no such right.”

Rest paid the penalties last week. Payment of an infringement notice is not an admission of liability, ASIC says.

The fund said: “We are deeply sorry to these members for any inconvenience caused, and that our initial communications with respect to their insurance cover were not as clear as they should have been.

“We have reviewed our member communications to make them clearer and to align with the expectations of our members and ASIC.

“We have co-operated with ASIC and have taken appropriate action to address its concerns.”