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. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week 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 ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 16 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 16 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 17 hours ago