Industry funds back ASIC on publishing IDR data

Mike Taylor

Managing Editor and Publisher

20 May 2025

Industry superannuation funds have drawn parallels between the Australian Securities and Investments Commission’s (ASIC’s) proposals around publishing financial services internal dispute resolution data and the workings of the superannuation performance test.

The Super Members Council (SMC) has told an ASIC consultation that publishing common measurable data helps deliver better member outcomes with an example being the performance test in the super sector, along with the ATO fund comparison tool.

It said the super performance test has been successful in weeding out poor performing funds and “ensuring a laser like focus to the importance of stronger returns” while the ATO comparison tool means members can compare for themselves the performance of different funds.

“Similarly, the proposal to publish firm level data about complaints and reportable situations is a logical extension of ongoing efforts to provide members with more information about super fund operations, service delivery and value for money, including in the areas of investment performance, fees, expenditure and externally mediated disputes,” the SMC told ASIC.

“Reporting on complaints and breaches will incentivise funds and other financial firms to uplift their service delivery. It will allow firms to benchmark their performance against their peers and provide useful insights to identify and target efforts towards areas where they are most needed,” it said.

But, at the same time, the SMC has argued that superannuation internal dispute resolution (IDR) data has “unique characteristics that indicate that a high level of caution should be adopted, particularly when using the data for comparative purposes.

“Superannuation is a compulsory product that enables retirement savings for all working Australians. The level of engagement, while growing with increasing account balances, remains low. The level and types of complaints made to a super fund can be a factor of the actions of the fund, the demographics of the fund, and the external regulatory environment,” the SMC submission said.

“It is important that published contextual information relating to super funds indicates that many complaints relate to matters that are not within the power of the trustees to resolve e.g. requests for early release of funds, or accounts transferred to the ATO under the unclaimed money rules.

“While there is an obligation on trustees to inform their members, being mindful of the demographics of the fund, some funds will continue to receive a higher level of disputes many of which will have no standing due to a misunderstanding of rights under the superannuation system,” the submission said