ASIC is appealing a Federal Court decision to dismiss its conflicted remuneration case brought against Colonial First State Investments and the Commonwealth Bank.

The regulator had alleged that parties breached conflicted remuneration laws when negotiating a deal for Colonial to pay CBA to distribute a superannuation product through the bank’s branches and digital channels.

The super product, known as Essential Super, was distributed to over 390,000 customers.

The Federal Court last month dismissed ASIC’s proceedings after Justice Stewart Anderson found that Colonial’s payments to CBA did not constitute conflicted remuneration.

“We have appealed this decision because we are concerned that it will limit the operation of conflicted remuneration laws introduced in 2012,” said ASIC deputy chair, Sarah Court.

“Conflicted remuneration has the potential to cause significant consumer harm because it can prevent consumers from receiving appropriate advice and financial products free of influence.”

The appeal will be heard by the Full Federal Court on a date to be determined.