Tribunal calls for super fund transparency
SUPER fund trustees are being urged by the Superannuation Complaints Tribunal (SCT) to clearly identify reasons leading to granting or disallowing benefits to members.
SCT chairman Graham McDonald says while providing such information is not a legally enforceable requirement, lack of explanation often results in complaints being lodged with the tribunal.
McDonald says such action would also benefit funds operating in a competitive market to differentiate themselves and that spelling out the justification for their decisions may help to attract new members.
“The lack of an explanation coupled with advice that a free review mechanism exists, almost inevitably results in an application being lodged with the tribunal, [and] given those circumstances, which of us would not seek to pursue an appeal?” McDonald says.
“On the other hand, a member who receives a summary of reasons and/or a list of the factors considered by the trustee is much better placed ... to assess whether lodging an application for review would be worthwhile,” he says.
He says a growing appreciation by the courts that super is no longer a discretionary matter, but a compulsory entitlement may ultimately lead to requiring trustees to give reasons to members for their decisions.
AUTHOR
Mike Taylor
Recommended for you
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
South Australian financial advice and accounting business Perks has extended its paid parental leave program from 12 to 26 weeks, putting it on par with big four firms.
Mason Stevens has tapped Investment Trends’ head of growth, alongside two other hires, to bolster its distribution team.
