🇦🇺Australia

Decision Errors from Fiduciary Breaches

2 verified sources

Definition

Lack of documentation exposes decisions to challenge, resulting in compensation for losses or unjust gains accounted to the company.

Key Findings

  • Financial Impact: AUD 200,000+ compensation orders per proven breach; disgorgement of unauthorised profits
  • Frequency: Per court-proven breach
  • Root Cause: No records of diligence or disclosure in fiduciary decisions

Why This Matters

The Pitch: Employee Benefit Funds in Australia 🇦🇺 incur AUD 200,000+ losses per bad decision due to undocumented fiduciary compliance. Automation provides audit trails for defensible choices.

Affected Stakeholders

Company Directors, Fund Trustees

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Fiduciary Duty Breaches

AUD 100,000+ civil penalties per breach; personal liability for company debts

Misuse of Confidential Information

AUD 50,000+ per breach in compensation or disgorged profits

Strafzahlungen wegen fehlerhafter Diskriminierungstests

Logic-based estimate: for a mid-size employer with AUD 10m payroll and 10% contributions, failed annual nondiscrimination-style testing can trigger ~1% corrective contributions plus rectification costs ≈ AUD 100,000 in a breach year; penalty/interest/advice costs in the order of AUD 5,000–20,000 per late correction event.

Verzögerte Beitragseingänge durch manuelle Jahresprüfungen

Logic-based estimate: per employer arrangement with AUD 5m–10m annual premiums/contributions, delayed year-end adjustments of AUD 250,000–1,000,000 by 1–3 months create a financing cost of approx. AUD 1,250–15,000 per year; at 20–50 plans this scales to AUD 25,000–250,000 p.a.

Hohe Verwaltungskosten für manuelle Jahres-Compliance-Tests

Logic-based estimate: 5–15 hours of specialist work per plan at ~AUD 150/hour ≈ AUD 750–2,250 per plan per year; for 100 employer plans, AUD 75,000–225,000 p.a. in manual testing and documentation costs, of which ~AUD 20,000–80,000 is avoidable through automation.

Bußgelder wegen fehlerhafter COBRA-Mitteilungen

Quantified: up to USD 100 (≈ AUD 150) per day per affected beneficiary in statutory penalties, plus potential liability for individual health care claims that can easily exceed AUD 50,000 per serious case; across a mid-sized portfolio, this commonly aggregates to AUD 10,000–100,000+ annually.

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