FSC mounts court challenge to FWC on defaults
The Financial Services Council (FSC) has followed through on its threatened court action challenging the validity of the Fair Work Commission's (FWC's) expert superannuation panel and its default fund selection process.
The FSC late yesterday fulfilled its legal threat by lodging an application with the Federal Court within which it contests the constitution of the expert panel on the basis that it does not comply with the provisions of the Fair Work Act.
According to the documentation filed by the FSC, the challenge is based on three key points:
1. The self-appointment of the FWC President to form part of the Expert Panel on 17 April was not authorised by the Fair Work Act;
2. The Expert Panel is not constituted in accordance with the Fair Work Act; and
3. The Expert Panel is not currently authorised to continue to deal with the Review of MySuper funds.
According to the FSC, it decided to initiate the Federal Court action following a statement from FWC President Iain Ross on 28 April which denied an FSC request for a hearing on the validity of the Expert Panel for default superannuation funds and said any challenge should be taken up in court.
Commenting on the move, FSC chief executive John Brogden said the Federal Court action was intended to ensure that any uncertainty on the validity of the Expert Panel "will be clarified once and for all."
He noted that the FSC was also seeking an order to restrain the expert panel from continuing to deal with the review of MySuper default funds unless it is properly constituted in accordance with the Fair Work Act.
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