Financial Standard Comments - Large super funds 'obstruct' withdrawals

Comment by Chris ()

Chris () — Thu, 11 Aug 2011 13:40:32 +1000

As a planner for 8 years I do not believe that any super fund deliberately delay withdrawals.

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Comment by Jim Creedon ()

Jim Creedon () — Thu, 11 Aug 2011 13:42:00 +1000

I tried to roll Super from an industry fund and it was dealyed because I did not disclose information about my hours of business!!!!!!!!!!

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Comment by Brendon ()

Brendon () — Thu, 11 Aug 2011 15:46:07 +1000

The funds are obliged to respond to a roll over request within a given time frame. It is unlikely that a large fund would deliberately risk their complying status to retain a member that does not want to be there. A large number of delays are caused when SMSF owners do not update their membership details with the ATO. At the moment most large funds have the ability to cross check an SMSF's members with the ATO. If the member details have not been completed the fund will not make the transfer.
Refer to the website below for more information:
http://www.ato.gov.au/superfunds/content.aspx?doc=/content/00258972.htm&pc=001/149/030/003/001&mnu=49555&mfp=001/149&st=&cy=

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Comment by Graham Doessel MyCRA Credit Repairs ()

Graham Doessel MyCRA Credit Repairs () — Mon, 15 Aug 2011 12:39:22 +1000

Superannuation funds SHOULD exercise caution with their members when it comes to customers notifying changes in funds management.The Federal Government has actually directed them to toughen their identification procedures by the end of the year.
This is in response to emerging cases of identity theft and Superannuation fraud. Victims effectively have their super 'hijacked' and transferred into managed accounts by identity thieves.
Police say it is an easy form of fraud because many people don't check their Super accounts in great detail. It can go undetected for years. What's worse is there is no requirement for Superannuation funds to reimburse identity theft victims, as is the case when fraud occurs with banks.
Identity theft is the fastest growing crime in this country, so it is important we make changes to stay ahead of it. It can not only leave victims with a drained bank account, but a damaged credit file for 5 years.

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