ASIC puts super funds on notice on complaints handling

ASIC IDR

7 April 2021
| By Mike |
image
image
expand image

Insurers, administrators and other entities providing services to superannuation funds have been placed on notice by the Australian Securities and Investments Commission (ASIC) that they will need to live by the new and significantly shorter 45-day complaints handling timeframe.

ASIC has reinforced with superannuation fund trustees the need to get their houses in order on internal dispute resolution (IDR) operating on a similar basis to financial planning companies and in line with the 45-day time-frame which has been reduced from 90 days, including employing more people and getting their information technology systems upgraded.

ASIC said that, if they had not already done so, superannuation trustee boards should seek advice on how their operations would meet the requirements of Regulatory Guide 271 (RG 271).

“Some of the changes may take some time to implement. These may include necessary changes to information technology (IT) and administration systems for complaints management, including capturing data, processes and procedures, and staff training,” it said.

“Trustees will also need to review their insourced and outsourced arrangements, which may require contractual and/or operational changes in order to meet the requirements of RG 271,” ASIC said. “Any third parties involved in handling complaints (including an insurer for claim related complaints) will need to be able to meet the shortened 45-day maximum timeframe (from 90 days) to resolve complaints and to meet the data collection and reporting requirements.”

“As for external providers, under the design and distribution obligations, which also commence on 5 October 2021, product distributors must record and report the number of complaints they receive. Trustees are responsible for outsourced providers and must ensure there is clear oversight of these arrangements.

“We anticipate the new IDR standards may require trustees to invest in skilled staff and systems. Trustees may need to revisit how they structure delegations, including authority to make decisions and financial delegations, to ensure relevant staff are sufficiently empowered to resolve complaints fairly and efficiently, and to avoid delays in resolving complaints under the shorter timeframes.

“Trustees should also take into account the fact that levels and complexity of complaints can fluctuate, so they should consider how they use flexible resourcing,” ASIC said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 16 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 20 hours ago