Strengthening ASIC is good for the community: ASFA

The Association of Superannuation Funds of Australia (ASFA) is pleased that the Federal Government has announced today that it is strengthening ASIC.

“ASFA has long recognised the importance of ASIC, and today’s release of the ASIC Capability Review and the government’s response, is an important step forward,” said Ms Pauline Vamos, CEO, ASFA.

“In particular, ASFA is pleased that there is greater funding for the Superannuation Complaints Tribunal (SCT) to clear the current backlog of cases.

“Most complaints are able to be resolved by fund members dealing directly with their superannuation fund. However, where members need to take the next step and seek a resolution through the SCT, it is important that these issues are resolved quickly as some complainants are in a difficult financial position.

“The SCT is a service of critical importance to APRA-regulated superannuation funds and their members. Future funding needs to reflect the rise in time taken to resolve complaints due to the complexity of issues and increasing numbers of those registering a beneficial interest,” said Ms Vamos.

ASFA also notes the government’s announcement of the implementation of the Financial System Inquiry recommendation for a full user pays model for the funding of ASIC.

“ASFA supports adequate and appropriate funding for ASIC, and considers that all regulated industries should contribute to that funding via levies,” Ms Vamos continued.

“The superannuation industry already makes a substantial contribution toward the cost of its regulation by ASIC, through the allocation ASIC receives from the industry levy, collected by APRA from regulated funds.

“ASFA has expressed concern about the lack of transparency and accountability inherent in the current process by which levies are applied and utilised.

“With this in mind, ASFA welcomes the deferral of the industry funding model until 2017, and looks forward to engaging with the government on the details of the funding model,” concluded Ms Vamos.

For further information, please contact:

Katrina Horrobin, 0451 949 300.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.