Budget confirms creation of Financial Complaints Authority
The Federal Government has used the 2017/18 Budget to confirm its intention of moving to a single external dispute resolution (EDR) body covering the financial services industry – the Financial Complaints Authority (FCA).
The move will spell the end of the Superannuation Complaints Tribunal (SCT) and the creation of an ombudsman approach similar to the Financial Ombudsman Service (FOS).
The decision has caused consternation in the superannuation industry with Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck pointing out that the SCT had served the industry and superannuation fund members. She noted that while the AIST supported a stand-alone super complaints tribunal, it was now critical that the new body – the Financial Complaints Authority – retain the protections currently present in the SCT powers.
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