ASFA calls for SCT-ASIC separation

29 October 2013
| By Mike |
image
image
expand image

A functional separation should occur between the Australian Securities and Investments Commission (ASIC) and the Superannuation Complaints Tribunal (SCT), according to the Association of Superannuation Funds of Australia (ASFA).

The industry body believes ASIC should not be able to control the workings of the SCT.

The call for functional separation of ASIC and the SCT has come amid recent suggestions that ASIC has been seeking to assert budget and administrative control over the tribunal.

However in a submission to the Senate Committee of Inquiry into the operations of ASIC, ASFA has made it clear that "best practice dictates that it [SCT] should operate independently of ASIC in all respects".

"As the SCT has the authority to determine claims or disputes, the function the SCT performs is more akin to a judicial function than an administrative or regulatory one," the ASFA submission said. "While, technically, the SCT is exercising powers of administrative review, a hallmark of tribunals is that they should operate, and importantly be perceived by consumers to be operating, on a truly independent, quasi-judicial basis.

"Accordingly, it is imperative that the SCT should be free to operate as a truly independent authority. In order to achieve this, it is our view that: The SCT should be functionally separated from ASIC and established as a body in its own right. The funding for the SCT under the industry supervisory levy, collected from the industry by APRA, should be entirely separate from that provided to ASIC. Even if the SCT is not established as an independent body then, at an absolute minimum, there should be full and transparent disclosure by ASIC of the amounts allocated to the SCT each financial year and the basis on which that allocation was determined."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year ago

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 ...

8 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 7 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 12 hours ago