Separate SCT from ASIC, says ASFA
The Australian Securities and Investments Commission (ASIC) should not be able to control the workings of the Superannuation Complaints Tribunal (SCT) and a functional separation should occur, according to the Association of Superannuation Funds of Australia (ASFA).
The call for functional separation of ASIC and the SCT has come amid recent suggestions that ASIC had been seeking to assert budget and administrative control over the tribunal.
However in a submission to the Senate Committee of Inquiry into the operations of ASIC, ASFA has made it clear that "best practice dictates that it [SCT] should operate independently of ASIC in all respects".
"As the SCT has the authority to determine claims or disputes, the function the SCT performs is more akin to a judicial function than an administrative or regulatory one," the ASFA submission said. "While, technically, the SCT is exercising powers of administrative review, a hallmark of tribunals is that they should operate, and importantly be perceived by consumers to be operating, on a truly independent, quasi-judicial basis."
"Accordingly, it is imperative that the SCT should be free to operate as a truly independent authority. In order to achieve this, it is our view that: The SCT should be functionally separated from ASIC and established as a body in its own right. The funding for the SCT under the industry supervisory levy, collected from the industry by APRA, should be entirely separate from that provided to ASIC. Even if the SCT is not established as an independent body then, at an absolute minimum, there should be full and transparent disclosure by ASIC of the amounts allocated to the SCT each financial year and the basis on which that allocation was determined."
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
