Superannuation trustees are being urged to review their internal dispute resolution (IDR) arrangements after the first stage of an Australian Securities and Investments Commission (ASIC) surveillance found indicators of significant compliance issues.
The corporate regulator’s surveillance examined trustees’ compliance with the new enforceable requirements in Regulatory Guide 271 Internal dispute resolution (RG 271), which took effect on 5 October 2021. It followed ASIC’s earlier survey of trustees’ preparedness for compliance with RG 271, which highlighted focus areas for trustees before the new requirements commenced.
For the first stage of the surveillance, ASIC gathered and analysed data on the status and timeliness of complaints handling (excluding objections to death benefit distributions) from a selection of 35 trustees of 38 funds covering 49,029 complaints received between 5 October 2021 and 28 February 2022.
ASIC commissioner, Danielle Press, said: “Dispute resolution is an essential part of the consumer protection framework in Australia.
“A trustee’s approach to dispute resolution is a meaningful measure of whether they are focused on the interests of their members. It also indicates the maturity of the trustee’s approach to risk. When done well, dispute resolution can benefit trustees by helping build members’ trust and confidence.
“However, the first stage of ASIC's surveillance about internal dispute resolution practices of trustees has identified some problem areas that need fixing.
“We want trustees that have fallen behind to strengthen their internal dispute resolution arrangements to make sure that member complaints are handled in an effective, fair and timely way.”
Observations based on data collected
Commissioner Press said: “ASIC warned trustees that they needed to prepare for compliance with the enforceable requirements in RG 271. We expect all trustees to have in place effective arrangements that support expressions of dissatisfaction from their members and deliver fair, transparent and timely member outcomes. Trustees should continually monitor and update their processes to ensure these remain fit-for-purpose.”
In the next stage of the surveillance, ASIC would check how relevant trustees among those reviewed were addressing the concerns identified so far and would closely examine a smaller sub-set of trustees. ASIC would also consider regulatory action where appropriate, and intends to communicate the outcomes once the surveillance is complete.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment