SCT still being starved of funding

SCT/AFCA/

4 October 2017
| By Mike |
image
image
expand image

Lack of specific budget funding may mean that the Superannuation Complaints Tribunal (SCT) is still seeking to plough through the backlog of complaints for four years after the establishment of the Australian Financial Complaints Authority (AFCA).

The SCT has used its submission to the Senate Economic References Committee inquiry into the legislation establishing the AFCA to make clear that it does not have the financial resourcing necessary to clear its backlog by 30 June, 2020.

Instead, and against the backdrop of common industry perceptions that the SCT suffered from chronic underfunding for much of the past half-decade, the tribunal’s submission to the Senate Committee said it could be December 2022 before outstanding cases are settled.

“Regarding the close of the SCT, we reiterate that the 2017-18 Budget did not provide resourcing to enable the SCT to resolve existing complaints by 30 June 2020,” the letter accompanying the submission said. “Based on current resource levels and complaint volumes it is estimated that if AFCA receives complaints from 1 July 2018, open complaints at the SCT will not be finalised until December 2022.”

The letter said the SCT continued to work with the Australian Securities and Investments Commission (ASIC) and Treasury to progress a funding proposal, noting that “it is critical for the SCT to be resourced appropriately if a smooth transition to AFCA is to be achieved”.

“The SCT continues its commitment to work with government and stakeholders to share our superannuation complaint resolution expertise and support a smooth transition to AFCA,” the letter said.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

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

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND