Industry funds urge publication of firm level complaints data

14 August 2019

Industry funds group, the Australian Institute of Superannuation Trustees (AIST) has repeated its calls for the financial services regulators to keep registers which would allow consumers to access the level of complaints received about individual firms.

In a submission filed with the Australian Securities and Investments Commission (ASIC) dealing with internal dispute resolution (IDR) procedures the AIST said it believed that consumers should be able to search complaints at both firm and aggregate level.

And, in what appeared to be a pointed reference to vertically-integrated structures, the AIST said the ability to look at firm-level complaints should extend to outsourced providers and group conglomerates.

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It said the financial services Royal Commission had identified many instances where structural conflicts of interest had adversely affected consumers.

“It is therefore important that the volume of complaints be at an individual firm level (e.g. a superannuation fund) as well as at a conglomerate level (e.g. a superannuation fund which forms part of a banking conglomerate),” the AIST submission said.

However, in similar terms to the Financial Planning Association (FPA), the AIST expressed concern at the degree to which complaints made via social media should be recognised.

“AIST acknowledges that complaints may now be made on social media platforms.  That being said, anecdotal feedback from funds is that at an industry level, less than 50 percent of people funds attempt to contact via social media respond to the fund,” the submission said.

It suggested that greater guidance was needed around what actually represented a complaint on social media and whether a complaint was actually being made by a genuine member.

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Lunatic left again aiming to take a blow at planners with pure self interests of gaining further inflow revenue for union super funds. These organisations should be banned as 100% vertically integrated and conflicted.

Would be a great medium to push for claims data and publish number of insurance claims made and number denied by the Super fund trustees. Transparency could be a good thing for the whole sector

Ok....lets have all the conflicted director relationships in some well known industry super funds fully exposed also.
Lets have one of the former Directors of a very large industry super fund fully explain why they also held a directorship of a company that this fund held a 31% shareholding in on 30/06/2018 valued at $1,710,775 and where this company received fees from this fund for investment consulting services for the 2017/18 financial year of $3,721,731.
A director of a large industry super fund holding shares in a related company that receives payments from that industry super fund for services provided.
All fully disclosed on financial statements as relevant interests and related party investments and transactions.
But does anyone at all think this is ok ?
On 10th May, 2017 Money Management published an article outlining the issues ASIC had with direct commercial links
between Industry Fund Services (IFS) and a large number of industry super funds.
This article stated that there were 27 industry super funds which were shareholders in IFS.
Does the AIST think this is ok ?
Isn't this about blatant conflicts of interest despite being fully disclosed?
Lets have the AIST make a public comment on " relationships" between directors of industry super funds and other commercial entities they deal with, pay monies to or receive monies from and/or retain shareholdings in.
There has been immense volumes of monies not only paid to the trade union movement over many years, but also to related and associated entities providing service some with connections to directors of industry super funds.
If Josh Frydenberg wants to play properly, he needs to grow the balls to have a long, protracted and intense investigation into what really goes on in this space.
Lets see if he has the courage to open this can up and do a thorough and complete job.

Get rid of Wash-out Josh and put in Tim Wilson who led the voracious charge against Labor's franking credit policy debacle, has a strong following in the retiree groups already and via his comments is extremely aware of the corruption and unholy powerful alliance between unions, industry super and Labor.

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