Are Consumers Adequately Protected?
The Senate Select Committee on Superannuation and Financial
Services held a Public Hearing in Sydney on 15 May on matters relating
to superannuation and financial services. One of the matters the
Committee is inquiring into is prudential supervision and consumer protection
for superannuation, banking and financial services.
The Committee heard evidence from key witness groups,
including consultative organisations (ASFA and IFSA), consumer representatives
(the Financial Services Consumer Policy Centre), employee representatives
(AMWU), fund administrators and service providers, including AMP Financial
Services, REST Super, and Phillips Fox Actuaries about the adequacy of
regulation and safeguarding consumer rights.
A key issue of concern to witnesses was the lack of hands-on
experience of operational level regulators, especially in the prudential
supervision of the superannuation industry, following the redistribution
of regulatory responsibilities as recommended by the Wallis Inquiry into
Financial Services. Consultative bodies and industry cited as examples
the additional costs and administrative burden imposed on trustees by
APRA’s implementation of policy in several areas, including:
- Monitoring the employment status of superannuation fund members aged
over 65;
- The implementation of new legislation governing binding death benefit
nominations; and
- The rules governing successor funds.
Mechanisms to further safeguard consumer rights were
also canvassed, with attention being drawn to:
- The adequacy of protection from fraud and theft for post-retirement
income products;
- The need for regulation and disclosure of bank fees and charges; and
- The need for additional mechanisms to oversight consumer affairs.
The transcript of the hearing is available on the internet
at: www.aph.gov.au/hansard/senate/commttee/comsen.htm
Contact:
| For comment: |
Senator John Watson
Chair
|
02 6277 3685 (Canberra) or
03 6331 4544 (Launceston, TAS) |
| For information: |
Sue Morton
Secretary
|
02 6277 3458 or
0416278258 |
| Internet access: |
https://www.aph.gov.au/senate/committee |
|
| Email: |
super.sen@aph.gov.au |
|
22 May 2000
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