Super funds on notice over complaints handling failings

Superannuation funds are failing to address mounting complaints, according to the Australian Securities and Investments Commission (ASIC). The watchdog found that the $3.4 trillion industry is ignoring warning signs about its handling of customers' complaints at a critical time, as millions of Australians transition from accumulating super balances to withdrawing their retirement income.

ASIC Commissioner Simone Constant warned that super funds should treat complaints as canaries in the coal mine, but they often ignore the warning signs. The regulator highlighted issues such as timely payment of death benefits, with loved ones waiting years to receive owed money in some cases. ASIC reviewed all 45 superannuation trustees and found that a quarter were not regularly analyzing their complaints data to identify systemic issues, even though there has been a 43% year-on-year increase in superannuation complaints.

Constant emphasized that the issue is industry-wide and called for better member services and complaints handling. The Association of Superannuation Funds of Australia acknowledged the need for improvement and pledged to act quickly based on ASIC's recommendations.