FSC issues new challenge on default funds
The future of the Fair Work Commission’s (FWC’s) review of default funds under modern awards has once again been put in doubt with the Financial Services Council (FSC) reinforcing it claims that the process has become flawed.
The FSC chief executive, John Brogden, has once again written to the Fair Work Commission arguing that the Commission should stop the process until it acts to rectify the status of the expert panel established to review the default fund regime.
His letter states that this is on the basis that the make-up of the expert panel does not comply with the Fair Work Act.
Earlier correspondence from the FSC forced the standing down of two members of the expert panel on the basis of perceived conflicts of interest because of their board positions on superannuation funds which hold default fund status.
In its latest letter to the FWC, the FSC has said the current expert panel does not meet the requirements of the Act because it consists of six FWC members, rather than the seven required by the legislation and because it has only two expert members, rather than the three required by the Act.
Brogden’s letter said that in these circumstances there was limited scope under the Act for the expert panel to continue dealing with the matter and that in the absence of an additional member being appointed to the expert panel, the present panel cold not proceed to deal with the default funds review.
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