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Cranky super fund member told to pursue his planner
The Superannuation Complaints Tribunal (SCT) has suggested a superannuation fund member should directly pursue a financial planner who provided a “slideshow” detailing insurance arrangements inside of superannuation which ultimately proved to be wrong.
In doing so, the SCT rejected a complaint by the superannuation fund member who had relied upon the contents of the financial planner’s slideshow to pursue a claim for temporary salary continuance (TSC) relating to an injury he suffered while not at work.
The financial planner was retained by the employer sponsor of a group superannuation scheme, but the planner was not an agent of the insurer.
The tribunal was told that shortly after the superannuation fund member had started work for the employer, he attended the financial planner’s slideshow which demonstrated the insurance benefits the employer had arranged “by virtue of the complainant being a member of the employer’s group cover arrangements with the insurer”.
It was told the slideshow represented to the member that the insurer provided TSC cover for the two-year period, paying 75 per cent of salary “not just at work”.
However, the insurer said that the representations made in the slideshow were neither originated nor approved by the insurance company and that the planner was not an agent of the insurer.
Dealing with the issue, the SCT said it accepted that neither the trustee nor the insurer were responsible for the financial planner's actions.
“The tribunal accepts the insurer had not endorsed the slideshow's content. It follows from this factual conclusion of the tribunal's that to the extent the complainant maintains the financial planner's slideshow misled him into paying for the more expensive insurance option, inclusive of TSC, then the complainant should pursue that aspect directly with the financial planner,” the SCT determination said.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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