Fund Regulatory Update

ASIC: complaints handling at super funds’ compliance issues

The Australian Securities and Investments Commission (ASIC) has been surveilling superannuation funds and reviewing their complaints handling status and timeliness, with significant compliance issues identified.

ASIC is encouraging superannuation trustees to review internal dispute resolution (IDR) arrangements after finding problems with the recording, response times, and communications with complainants regarding delays and process failures of complaints.

The complaints handling data from 35 trustees of 38 funds were analysed, with a complaint rate of 30 for every 10,000 members, with 10 per cent of the funds recording less than 10 complaints per 10,000 members. The low number of complaints at some funds was cause for concern for ASIC, with the stipulation that all complaints must be recorded.

Almost three per cent of all IDR responses from the 38 funds were sent after the 45-day maximum time period required, with seven of the funds sending out 10 per cent or more of their IDRs after 45 days. Other issues were identified such as customer communication, process failures or errors, and others.

APRA report on climate risk published

The Australian Prudential Regulation Authority (APRA) has published a climate risk report based on self-assessed criteria in a survey of the finance industry, particularly banking, insurance and superannuation. The survey was to delve into how companies are aligning their practices with guidelines released in November 2022 regarding climate change financial risks.

Responses from 64 medium to large institutions indicate that APRA-regulated businesses are overall aligning well to APRA guidance, particularly in governance and disclosure. Climate risk remains a dynamic discipline compared to other areas, and only a small portion of businesses have implemented their climate risk strategy across their risk management framework.