Are Consumers Adequately Protected? Source: SenateSuper 'Media Releases' 22nd May 2000 This material is reproduced by permission but does not purport to be the official or authorised version. The accuracy of the content is not guaranteed. Please rely only on the authorised document. 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: http://www.aph.gov.au/senate/committee Further details: Senate Select Committee on Superannuation and Financial Services Web site: www.aph.gov.au/senate/committee/superfinan_ctte Submit an Article to the Newsroom DISCLAIMER: Supercorp Australia Pty Ltd and its officers and employees, disclaim all and any liability and responsibility to any person for any act or consequence or omission in respect of the above information. No person should rely on the contents of this information without obtaining advice from a qualified professional. Copyright © 1999-2002 - Supercorp Australia Pty Ltd - ABN 92 063 307 700