Super funds urge 60 days on breach report handling | Australian Markets

Superannuation funds have informed the Australian Securities and Investments Commission (ASIC) that whereas they welcome proposed modifications to breach reporting preparations, they don’t go far enough.

The Association of Superannuation Funds of Australia (ASFA) has responded to the ASIC proposals by arguing that the reduction period of 30 days shouldn’t be enough and ought to be prolonged to 60 days.

It stated the present proposals outlined by ASIC didn’t present adequate timeframes for rectification and remediation stating that, for instance, “some rectification situations can take a longer period to identify the relevant issues and ensure members are compensated in the fairest manner”.

“This can be the case even in relatively minor matters, as members have tax consequences for any remediation decisions taken,” it stated.

“ASFA recommends the relevant sections related to the temporal element should be amended so that the proposed period for relief is changed form 30 days to 60 days,” it stated.

It stated that if the 60-day period for rectification shouldn’t be adopted then, alternatively, the timeframe ought to align to these within ASIC’s RG 271 coping with inner dispute decision.

“RG 271 provides specific exceptions to the general obligation that a financial firm must provide an internal dispute resolution response to a complainant no later than 30 calendar days after receiving the complaint.,” it stated. “For superannuation trustee complaints (except for complaints about death benefit distributions which provides a longer period), the maximum timeframe is no later than 45 calendar days after receiving the complaint.”

“ASFA considers that this 45-day period may provide more significant relief, and importantly, would help to align regulator timeframes across instruments, reducing compliance costs overall.”

“If neither of recommendations 3 or 4 are accepted, ASFA recommends in the alternative that ASIC consider splitting the timeframes for reportable situations that include a financial element to be rectified from those that are only non-financial in nature,” it stated

“Non-financial situations may be quickly and rectified within a 30-day timeframe. Financial situations could be extended to the 60 or 45-day timeframe in recommendations 3 and 4, to allow adequate time to analyse and financially re-compensate members as necessary.”