ob体育 has commenced civil penalty proceedings in the Federal Court alleging Telstra Super failed to comply with internal dispute resolution requirements.聽
This is the first proceeding under this regime, which came into effect on 5 October 2021.
The new regime makes certain provisions of ob体育鈥檚 Regulatory Guide for Internal Dispute Resolution (RG 271) enforceable, including the requirement to respond to most superannuation complaints within 45 days.
ob体育 alleges that 40% of Telstra Super鈥檚 responses to complainants during the relevant period did not comply with its own dispute resolution procedures, which included 106 complainants who were not responded to within the applicable 45-day timeframe.
ob体育 alleges that between 22 October 2021 and 13 January 2023, Telstra Super received 337 superannuation complaints but failed to comply with notification requirements when it failed to:
- respond to 106 complainants within 45 days;
- inform 85 complainants about why there was a delay in responding to their complaint; and
- inform 22 complainants about their right to take their compliant to AFCA.
ob体育 Deputy Chair Sarah Court said, 鈥榦b体育 expects the financial services industry to have effective dispute resolution procedures in place, and, importantly, to have the systems and resourcing to ensure they are being put into practice. Financial service providers need to prioritise dispute resolution procedures to properly protect consumers.鈥�
ob体育 further alleges that Telstra Super failed to operate efficiently, honestly and fairly when it failed to comply with its procedures, sent delay notifications to complainants when it was not justified to do so, and did not have adequate resources to comply with its internal dispute resolution procedures.
Complaints to a superannuation trustee can cover a range of issues, from members who were inconvenienced by confusing information, to more serious complaints that result in financial harm, such as delayed or reduced payments or investments being made incorrectly.聽
ob体育 is seeking declarations, pecuniary penalties and other orders against Telstra Super.
The date for the first case management hearing is yet to be scheduled.
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Background
Telstra Super Pty Ltd is trustee of the Telstra Superannuation Scheme, a fund with 91,361 members and over $23 billion in funds under management as at 30 June 2022.
ob体育鈥檚 guidance regarding internal dispute obligations is set out in ob体育鈥檚 Regulatory Guide 271聽Internal dispute resolution听(RG 271).听
In December 2022, ob体育 gave notice to Superannuation trustees to improve their internal dispute resolution systems and outlined ob体育 would consider regulatory action where it held serious concerns (22-347MR).
ob体育鈥檚 Moneysmart website features information to support Australian consumers when making financial decisions. Find out more about if you are unhappy with a product or service.
The Australian Financial Complaints Authority (AFCA) independently assists consumers and small businesses to about financial firms.
* The figures in this media release and Concise Statement refer to specific areas of non-compliance that ob体育 is alleging as part of its case. Some complaints have more than one issue. ob体育 alleges that 40% of the complaints from the relevant period show at least one area of non-compliance.
Editor's note:聽
A case management hearing has been listed for 7 December before Justice O'Bryan.聽
Editor's note 2:聽
The case management hearing listed on 7 December 2023 is vacated and listed for 9 February 2024 before Justice O'Bryan.
Editor鈥檚 note 3:
The case management hearing listed for 9 February 2024 was vacated. The matter has been reallocated to Justice Neskovcin and has been listed for a case management hearing on 5 July 2024.
Editor's note 4:
The case management hearing listed for 5 July 2024 was vacated. The matter has been listed for a further case management hearing on 30 August 2024 before Justice Neskovcin.
Editor's note 5:
On 29 August 2024, the case management hearing listed for 30 August 2024 was vacated, and was listed for a further case management hearing on 4 October before Justice Neskovcin.
Editor's note 6:
On 3 October 2024, the case management hearing listed for 4 October 2024 was vacated. The matter has been listed for a further case management hearing on 6 November before Justice Neskovcin.
Editor鈥檚 Note 7
On 6 November 2024, the Court set down the matter for a hearing on liability on 15-17 April, 22-24 April and 28 April to 1 May 2025 with an estimate of 10 days.