Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 151
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 151
Issued by. the authority of the Assistant Treasurer
Superannuation (Resolution of Complaints) Act 1993
Superannuation (Resolution of Complaints) Regulations (Amendment)
The Superannuation (Resolution of Complaints) Act 1993 (the Act) establishes the Superannuation Complaints Tribunal. which commenced operations on 1 July 1994. The Tribunal has the objectives of providing a fair.. economical. informal and quick mechanism for:
* the conciliation of complaints made by members of certain regulated superannuation funds and approved deposit funds; and
* if conciliation is not successful at resolving the complaint - the review of the fund trustee decision to which the complaint relates.
Section 68 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
Amendments to the Act effected by the Superannuation Industry (Supervision) Legislation Amendment Act 1995, inter alia, enable the Tribunal to provide appropriate remedies for:
* an unfair or unreasonable decision of a trustee to admit a person to a 'life policy fund' (a superannuation fund where some or all of the members are covered by a life policy maintained by the trustee for the purposes of the fund); and
* unfair or unreasonable conduct of an insurer in the sale of an annuity policy.
In particular, in order to effect an appropriate remedy for a decision or conduct that is unfair or unreasonable, as set out above, subparagraph 37A(3)(a)(iii), paragraph 37A(4)(c) and subparagraph 37B(2)(a)(iii) of the Act enable the Tribunal to determine that monies paid under a life policy, annuity policy or in relation to a 'life policy fund' are to be repaid together with interest worked out in the manner prescribed in the regulations.
The Regulations insert a new Regulation 7 into the Superannuation (Resolution of Complaints) Regulations which sets out the method of calculating interest on monies that have been ordered to be repaid by the Tribunal.
The Regulations will commence on gazettal.
Overview
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 151 amends the Superannuation (Resolution of Complaints) Regulations 1994, which were made under the Superannuation (Resolution of Complaints) Act 1993. The primary objective of the Act, enacted by the Australian Parliament, was to establish a fair, economical, informal, and quick mechanism for conciliating and reviewing complaints related to certain regulated superannuation funds and approved deposit funds. The Act established the Superannuation Complaints Tribunal, which began operations on 1 July 1994. The amendments introduced by these regulations are designed to provide the Tribunal with the ability to offer appropriate remedies for unfair or unreasonable decisions and conduct related to life policy funds and annuity policies, as authorised by recent legislative changes. These amendments aim to ensure that the Tribunal can effectively address and resolve complaints in a manner consistent with the overarching policy objectives of the Act.
Scope and Application
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 151, issued under the authority of the Assistant Treasurer, amend the Superannuation (Resolution of Complaints) Regulations 1994 to provide specific provisions for the calculation of interest on monies ordered to be repaid by the Superannuation Complaints Tribunal. This amendment is consequential to the legislative changes introduced by the Superannuation Industry (Supervision) Legislation Amendment Act 1995, which expanded the powers of the Tribunal to provide remedies for unfair or unreasonable decisions regarding life policy funds and conduct in the sale of annuity policies. The regulations apply to all parties involved in the resolution of complaints within the scope of the Superannuation (Resolution of Complaints) Act 1993, including fund members, trustees, and insurers, across Australia. The new Regulation 7 prescribes the method of calculating interest on repayments, ensuring that the Tribunal can effectively implement its decisions to provide fair remedies. The amendments will take effect upon gazette.
Key Provisions
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 151 amends the existing Superannuation (Resolution of Complaints) Regulations under the Superannuation (Resolution of Complaints) Act 1993. These regulations introduce new provisions to address complaints related to life policy funds and annuity policies, as mandated by the Superannuation Industry (Supervision) Legislation Amendment Act 1995. The key operative sections include the insertion of a new Regulation 7, which specifies the method for calculating interest on monies ordered to be repaid by the Superannuation Complaints Tribunal (section 3). This new regulation provides clarity on how interest should be computed in cases where the Tribunal determines that funds should be repaid to the complainant.
The amended regulations impose specific obligations on the Superannuation Complaints Tribunal, requiring it to adhere to the prescribed method for calculating interest as outlined in Regulation 7 when determining the repayment of monies in cases of unfair or unreasonable decisions or conduct. This ensures that any financial remedies provided by the Tribunal are consistent and transparent. The regulations also place a responsibility on the Tribunal to enforce the repayment of these funds, including the interest calculated in accordance with the new provisions.
Failure to comply with the requirements set out in the amended regulations may result in civil or criminal consequences, depending on the nature and severity of the breach. While the regulations themselves do not specify penalties, breaches of the Superannuation (Resolution of Complaints) Act 1993 or related legislation may attract fines or other legal sanctions as stipulated in the primary Act. For instance, Section 68 of the Act allows for the imposition of penalties for non-compliance with the Tribunal’s decisions or orders. These penalties may include financial penalties, which can be substantial, reflecting the importance of ensuring that the Tribunal’s decisions are respected and enforced.