Wednesday, 28 June 2017

External Dispute Resolution: Compensation and Redress

AIST has concerns around the use of a compensation scheme of last resort for superannuation complaints notably because unpaid determinations are not an issue within the superannuation sector as super funds are required by law to comply with the decision that is made. Due to this, profit-to-member super funds should not be made to contribute to any compensation scheme. There is also no evidence of redress problems within the super sector. Any redress scheme could potentially jeopardise members’ interests as members’ money would ultimately fund the scheme and there is no evidence that allowing redress would be beneficial.