POWERED BY MOMENTUM MEDIA
Administrator’s mistake costs fund
A superannuation fund has been ordered to pay the legal costs associated with a member lodging income protection claims documents, following a mistake by the fund's administrator.
The Superannuation Complaints Tribunal (SCT) has ordered the payment of the legal costs because the administrator had dispatched the claim forms to the member event though she had never held income protection coverage under the fund.
The member had complained to the SCT that she had been unreasonably denied income protection coverage, but the Tribunal noted that she had been erroneously informed by the administrator that she was eligible for IP cover following a major car accident.
The SCT upheld the decision of the superannuation fund and its insurer to deny the IP claim, but stated "it was unfortunate that the Complainant was erroneously informed on 19 October 2012, by the Trustee's Administrator that she was eligible for IP Cover, ‘based on the belief that the records held about [the Complainant's] employment start date were incorrect'".
It said the complainant had completed claim documents sent to her by the administrator and "had incurred legal expenses in doing so, based on her reliance on the Misrepresentation".
The SCT determination said that while this initial "confusion" in dealing with the Complainant's eligibility to make an IP Cover claim, did not impact upon the substantive issue that was the subject of this complaint the Tribunal found that the Complainant did enter into a financial commitment for legal expenses in reliance on the misrepresentation.
"This misrepresentation was made after considerable review and analysis by the Trustee's Administrator and was reasonably relied upon by the Complainant to her financial detriment," the SCT determination said.
The Tribunal ordered that the fund compensate the member for the amount of the legal fees incurred in lodging the IP claim.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
