POWERED BY MOMENTUM MEDIA
Super complaints up 11% in 2022
Grievances around super accounts topped the list of over 5,500 superannuation-related complaints by product received by the Australian Financial Complaints Authority (AFCA) in 2022.
At 3,307, account-related complaints comprised nearly 60% of all super-related complaints, with the total number of super complaints up 11% from last year.
Speaking at the AFCA Member Forum, Anne Maree Howley, AFCA senior ombudsman, superannuation, noted such complaints often related to administration issues such as rollovers and switches.
“We often see this type of complaint being resolved relatively promptly, either in the refer-back period or in case management, particularly when there is some clarity in respect to the complaint raised either by the financial firm or by AFCA,” she said.
The other common complaints related to product were around total and permanent disability (933), income protection (820), death benefits (475), and pension (74).
In comparison, the top issue-related complaints received by AFCA were delays in claim handling (990), service quality (889), and account administration error (573).
There were some 351 complaints around incorrect fees and costs and 321 complaints regarding denial of claims.
Between 1 January and 31 December, 2022, the majority of super complaints took anywhere between 60 to 180 days to be closed. Around 386 complaints took over a year to be resolved.
With this, Howley noted that the average time to close complaints had reduced slightly to 119 days, down 2% from last year.
“One figure I’d like to highlight is the resolution rate at registration and referral. You would have noted that in the June 2022 period, the resolution rate was at 31%, but by December, it was up to 38%. In the months of January and February, it increased to 39%,” she said.
Nevertheless, AFCA’s data indicated that most decision outcomes for super complaints were resolved by the financial firm (1,410) where the complaint was closed based on an agreement reached between the parties directly, with no involvement by AFCA.
This was followed by complaints closed by negotiations (546).
Howley observed: “An ASIC study has shown that an earlier resolution of a complaint results in a better experience for the complainant, so we acknowledge industry’s action in achieving this”.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
