Name and shame super sectors: AIST

The Australian Institute of Superannuation Trustees wants Australian Financial Complaints Authority to report which superannuation sectors are most complained about.

In a submission to AFCA's consultation paper on proposed arrangements for comparative reporting of complaint data, the AIST said AFCA's proposal to include the number of accepted complaints, their outcomes and a simple business metric for each financial firm - such as large, very large and small - in a public report did not go far enough.

The advocacy body wants to see the individual superannuation sectors called out in AFCA's public report, calling on the complaints authority to adopt APRA's sector categories - industry funds, retail funds and public sector funds - because the information is important to consumers.

As a result of the various instances of structural conflicts of interest brought to light by the Royal Commission, AIST has also called for the volume of complaints in the public report to be listed both at an individual and conglomerate level.

In this instance, a complaint against the superannuation offering of a wealth manager would also count as a complaint against the wealth manager.

Additionally, given the superannuation industry's use of outsourcing, AIST wants the public report to include data which identifies the financial organisation against which the complaint was made and any outsourced provider of the service.

"AIST notes that the Trustee of a superannuation fund remains ultimately responsible but believes nonetheless that this extended data or reporting should be included," the institute said.

According to the advocacy body, its recommended changes could ensure AFCA's public report was a useful tool for determining the areas regulators need to pay attention to.

"AIST strongly believes that the recommended inclusions to the public report would aide AFCA, consumers, the regulators, and industry to better understand the causes of complaints, where regulatory attention needs to be directed, as well as potentially where regulatory reform is needed," AIST said.

Read more: AISTAFCAAustralian Financial Complaints AuthorityAustralian Institute of Superannuation TrusteesAPRARoyal Commission
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