Fund trustees hit back at planner allegations

The Australian Institute of Superannuation Trustees has hit back at claims by some financial planners that industry funds are not complying with new rollover requirements.

The chief executive officer of the AIST, Fiona Reynolds, reacted to recent reports in Money Management by pointing out that not for profit superannuation funds had an exemplary record in meeting their compliance requirements, including those of the new ‘better super’ legislation.

“When you consider that the not-for-profit sector has grown significantly in recent years and now represents more than six million members, its record on compliance is outstanding, she said.

A recent report in Money Management quoted some planners claiming that industry funds had been failing to adequately meet their obligations, particularly with respect to statutory timeframes.

However, Reynolds said that while there was no doubt that fund administrators and trustees faced new challenges since the introduction of the 30-day rollover rule, AIST was confident that the vast majority of funds were successfully meeting these challenges.

“AIST, as a representative body for not-for-profit funds, including industry funds, takes non-compliance very seriously,” she said.

“Breaches of operating standards expose trustees to heavy fines and potentially to criminal prosecution in the case of contravention of a civil penalty provision involving dishonesty or fraud,” Reynolds said.

She said that statements from the financial planning industry about intentional non-compliance could be interpreted as accusing trustees of criminal behaviour.