ASIC is threatening action after identifying “significant” issues with how super funds handle member complaints, including lengthy delays and failing to tell complainants about their right to go to the Australian Financial Complaints Authority.
ASIC Commissioner Danielle Press said on Wednesday the regulator had identified “problem areas” with how funds handle member complaints, after the completion of the first stageThe regulator is considering regulatory action “where appropriate”.
“This is significantly lower than the overall rate. ASIC is concerned that the low complaint rate may be a result of some trustees failing to record all member complaints or adopting an inappropriately narrow definition of ‘complaint’,” the regulator said.Seven funds responded to 10 per cent or more of their complaints after the 45-day maximum time frame set out under the regulations.
When trustees take longer than 45 days to respond to a complaint, they are required to notify complainants of delays and their right to go to the AFCA.Between July and December last year, AFCA recorded 2057 complaints about superannuation funds. Half of all complaints related to account administration, while 35 per cent of problems were about life insurance.Australia’s largest superannuation fund, AustralianSuper, received 346 complaints during this period, which was more than any other trustee.
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