Superannuation funds should take action within 10 working days of a customer requesting payment or additional information, according to Association of Superannuation Funds of Australia (ASFA) chief executive officer Philippa Smith.
The Superannuation Industry (Supervision) Act allows this period of action to be 90 days; a length of time Smith said was too long.
“What we try to set out as standards, often work better than law,” she said.
“The expectation of the customer is that action on their requests happen more quickly.”
The ASFA best practice paper on the transfer, rollover and cashing of benefits recommends a maximum of 10 working days should generally apply to processing the request, once the necessary identity information has been received.
“Super funds need to be satisfied that the identity and bona fides of a member wishing to transfer money out are correct,” Smith said.
“Thanks to the level of checks and procedures we currently have, attempts at fraud have been intercepted by super funds.
“The recommendations in the best practice paper seek to build on those procedures, at the same time as expediting the process.
“What we are trying to do is set out practical operational steps.”
The paper also points out that requests by third parties, such as family or financial advisers, are likely to require additional checks.
