The Australian Securities and Investments Commission (ASIC) has revealed another crackdown on superannuation funds — this time on the manner in which trustees treat complaints.
The Conference of Major Superannuation Funds on the Gold Coast has been told that all too often trustees treat complaints as enquiries and consequently act too slowly to address problems.
ASIC’s director, legal and technical operations, Pam McAlister says ASIC has scrutinised the manner in which funds deal with complaints in a similar fashion to the way it has recently reviewed the handling of eligible rollover funds and illegal early withdrawal schemes.
She says there have been incidences of non-compliance on the part of some superannuation funds.
McAlister says that ASIC’s findings from the exercise suggest that some trustees are actually breaching their obligations with respect to dealing with complaints within 90 days.
Further, she says that trustees are also failing to provide the information required to be given in response to complaints and there is inconsistent disclosure about access to the Superannuation Complaints Tribunal.
“Industry best practice is not always being followed,” she says.
McAlister says that ASIC will be acting against funds identified as having breached their obligations with respect to dealing with member complaints.
