Any unresolved complaints with the Superannuation Complaints Tribunal (SCT) will be submitted to the Australian Securities and Investments Commission (ASIC) for approval, prior to the tribunal ceasing operations, the Australian Financial Complaints Authority (AFCA) has proposed.
AFCA said the proposal was made following a public consultation and submissions from industry and consumer bodies. It proposed changes to the rules would allow the transfer of any remaining complaints and established AFCA’s approach to any transferred complaints.
AFCA said there were a small number of complaints that might not be finalised before the SCT ceased operations on 31 December, 2020, and would need to be transferred to AFCA.
“The amendments provide that AFCA will consider any complaints transferred from the SCT under the AFCA rules that apply to superannuation complaints,” it said.
“Complaints that have not been finalised will enter AFCA’s dispute resolution process at the stage most comparable to the stage the complaint reached at the SCT.
“Additionally, the SCT will transfer the complaint files to ensure all information previously provided to the SCT is available to AFCA.”
AFCA noted that it would consider matters that were before the Federal Court on appeal from the SCT that were not finalised prior to SCT ceasing operations, and that required remittal back to be determined again or finalised in accordance with the court’s decision.
The authority said it anticipated the rules would be released in January, 2021.
Why do we have so many bodies such as ASIC, APRA, AFCA all with limited budgets and limited scope. I have been to the lot about my son’s Superannuation and Death Benefit being paid to a person other than his nomination and Will by REST. I have asked REST under 10.1 of the SIS Act what the Trustee based the decision on and been ignored by REST. I wrote to APRA and was told I must be given an answer but REST doesn’t have to show evidence. I went to ASIC with this and was told (very helpfully and appreciated the input) to write to the misconduct branch of ASIC as under 25D of the Acts Interpretation Act 1901 I must be given an answer. I did this and received a letter from the Misconduct Branch of ASIC to say “it has been noted” on the ASIC database. So I went to AFCA twice. Eventually AFCA said it was outside their complaints scope and REST said to answer it would compromise the confidentiality of the person the REST Trustee gave my deceased son’s Superannuation and Death benefit to. I still don’t know. No marriage, no engagement, no children biological or step, no money between bank accounts, no shared bank accounts or bills and knowing each other around 2 yrs or less. My objective is not about the money. It is about the power over any Australian workers money by these funds which the average worker doesn’t know about. It is the arrogance of them saying to me that they will give to whoever they think it should go to and they don’t care about the deceased wishes. REST told me my son could have changed his non binding nomination to binding any time online. If that is the Trustee’s/REST’s rationale then he could also have made this girl his beneficiary at any time but he didn’t. REST in a letter told me he should have had a binding nomination but that would have been invalid because we, his parents, were not dependents. REST knew we were his beneficiaries as shown on statements. Australian workers don’t know only a spouse, defacto spouse, children, and a dependent person can receive Super and Death Benefits so why are these Funds still taking Insurance from young people with no dependents?? Only because of the BRC are insurance companies which underwrite Super Insurance paying out lately but if the beneficiary is not dependent Insurance companies don’t have to pay. Retail Funds (such as Colonial First State) just pay to the nomination and if no nomination they pay to the Will. There is 30% tax on any Super and Death Benefit for a non dependent beneficiary in Superannuation. If you have an insurance policy for death outside superannuation (e.g Real Insurance) there is no tax and it must be paid to the nominated beneficiary. Isn’t it better to pay a bit more for Insurance and know who will receive it than have Insurance in Super and it can be taken over by the iron grip of a Trustee who will give it to who he wants to??