For a brief moment, the banking royal commission gave Australians, politicians and regulators an insight into a dirty little secret the $4 trillion super fund industry has been sitting on for years.
Trustees oversee the retirement savings of millions of Australians, many of whom are disengaged about how their fund is performing — until they come to retrieve it. Board composition has been a hoary issue for years as many industry funds ascribe to a 50-50 union-employer board model, which some argue isn't in step with modern corporate governance. While some have installed independent chairs, the composition can create conflicts and raises questions about whether it is in keeping with a broad skill set.
The sector quietly ditched its voluntary non-binding code in 2021 and replaced it with a set of guidelines, which aren't enforceable or binding. Noel Davis, a retired barrister, former adviser to trustees and the author of The Law of Superannuation in Australia, said super trustees have been breaching their fiduciary duties for years by incorrectly or inappropriately spending members' money on sponsorship, promotions and advertising, which is estimated to be more than $400 million a year.
When Cbus chair Wayne Swan blamed the administrator, Link Group , it raised alarm bells as it is used by almost half of the sector.A source with knowledge of the Productivity Commission's 2018 inquiry and report into super said there had been issues with Link for a number of years, including underinvesting in systems, data and personnel.
It didn't respond directly to Swan's comments, but pointed to a general comment: "It should be acknowledged that multiple stakeholders are involved in the insurance claims process. The decision-making authority rests with the trustee and insurers, and we operate under extensive business rules that vary for each fund."Australian Super is one of the other 20 funds that uses Link. It was quick to point out that it handled its issues differently to Cbus.
"Our aim is to resolve most death claims within four months from the date we receive the first claim form," she said. When asked if it had lodged any breach reports with ASIC in relation to death benefits and TPD claims handling, it said it had "engaged appropriately with ASIC on this issue as we would with all fund matters".MUFG said AustralianSuper had moved some functions due to an operating model change, "but it remains our largest client".
España Últimas Noticias, España Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fuente: FinancialReview - 🏆 2. / 90 Leer más »