A regulatory guide on internal dispute resolution by the Australian Securities and Investment Commission (ASIC) updates standards and requirements for financial services firms.
ASIC said in a statement that the aim of the guide was to ensure firms handled consumer complaints in a fair and timely manner, with the overall objective of raising internal dispute resolution standards in the industry.
“For the superannuation industry, the changes present opportunities for trustees to improve members’ trust and confidence in their fund, to minimise the costs that arise from protracted dispute resolution processes, and to improve how their fund operates,” ASIC said.
“Complaints handling is the first step in the dispute resolution framework. Effective complaint management processes improve consumer outcomes and a firm’s risk management,” it said.
“It can also reduce the risk of downstream remediation costs.”
ASIC said there were a number of enforceable obligations related to a superannuation fund’s operations, designed to ensure the timely and fair attendance for consumer complaints were achieved.
Among these, it said, were reduced timeframes for responding to complaints, including a reduction to a new maximum of 45 days for superannuation complaints.
“There is further guidance on the information that funds must include in written responses to allow consumers to understand complaint outcomes and decide whether to escalate their complaint,” the Commission said.
It said the guide also called f0r a greater focus on identifying, investigating and, where relevant, resolving possible systemic issues raised by complaints.
ASIC said that while the new standards outlined in the guide did not come into effect until 5 October, it urged trustees to engage with the guide now to ensure they were fully compliant by that deadline.
“ASIC will check in with industry at various stages of implementation and assess whether its expectations about preparation are being met,” it said.
