RG 271 And Superannuation Disputes: The Enforceable Paragraphs
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For the financial services industry, there are just a few short months to get compliant with RG 271. While these new regulations apply to all businesses in this industry, there are a few sub-sectors that have their own set of rules.
One of these is the superannuation industry.
For these companies, RG 271’s new requirements presents “opportunities for trustees to improve members’ trust and confidence in their fund, to minimise the costs that arise from protracted dispute resolution processes, and to improve how their fund operates” (Australian Superannuation Law Bulletin).
The Superannuation Specific Paragraphs
While almost all of the changes will apply to superannuation disputes, there are a few that are specific to the industry.
One of the enforceable paragraphs related to regulated superannuation funds (except for SMSFs), approved deposit funds and RSA providers specifically is as follows:
At a minimum, their IDR process must be able to deal with complaints made by a superannuation fund member or third-party beneficiary who is:
eligible to make a complaint to AFCA under s1053 of the Corporations Act; or
taken to be a member of a regulated superannuation fund or approved deposit fund, or a holder of an RSA, under s1053A of the Corporations Act.
This means that the IDR process must accept and deal with complaints made by:
superannuation product holders:
members or former members of a regulated superannuation fund (but not an SMSF);
beneficiaries or former beneficiaries of an approved deposit fund;
people with an interest in a superannuation annuity policy issued by a life company;
holders or former holders of an RSA; and
people with an interest in an insurance contract where the premiums are paid from an RSA;
beneficiaries with an interest in a death benefit; and
parties (and intending parties) to an agreement under the Family Law Act 1975 or order affecting superannuation, including:
a member, beneficiary or RSA holder’s spouse or former spouse who is party to an agreement, or subject to an order about that
person’s superannuation interest; and
someone eligible to request information about that superannuation interest.
Like other businesses in the financial services sector, superannuation funds must:
Provide IDR responses within the maximum timeframe (in this case 45 days, excluding disputes relating to death benefit distributions)