THE AIOFP’s intended challenge to the Minister on Sec 99FA of the Superannuation Industry (Supervision) Act 1993

The AIOFP will be challenging the Minister over the legal validity of the proposed amendments to section 99FA of the Superannuation Industry (Supervision) Act 1993. We have sought an initial legal opinion from Hamilton Locke partner Simon Carrodus around client Privacy issues and concerns about Superannuation Trustees reviewing Statements of Advice that may contain product information and advice about other superannuation funds or a member’s non-superannuation products. We will then be seeking a KC’s opinion to back up our view that the legislation is flawed, unworkable and not in the best interests of consumers.

We then have the option of testing our position in the Courts, including the High Court if necessary.

The Advice community has had enough of unnecessary Government overreach where legislators with no practical experience are forcing up the cost of advice for consumers and directly undermining the objectives of the Quality of Advice Review. There is already an effective consumer protection mechanism in place with the Australian Financial Complaints Authority [AFCA] expeditiously handling consumer complaints about advice matters. The industry doesn’t need another expensive and unnecessary overlay of compliance that consumers will end up paying for.

The irony of this extraneous legislation is that Superannuation Trustees are generally uncomfortable with the role of “SOA gatekeeper” being forced upon them by Government. The Delivering Better Final Outcomes legislation was supposed to reduce the compliance burden on superannuation trustees, not add to it.

More information in due course.

Regards.