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FSC-aligned retail funds sign up to consumer Standard

Mike Taylor2 July 2024
Finger pushes standards

The Financial Services Council (FSC) has given its member superannuation funds the opportunity to set a higher standard around consumer protection by having them sign up to a new Standard – FSC Standard No 29.

According to the FSC the Standard became voluntary for funds from 1 July but full compliance will be required in two years’ time on 1 July, 2026.

The Standard will apply to major FSC members such as Colonial First State (CFS), Insignia Financial and AMP Limited and will distinguish their approach from non-member funds.

Importantly, however, a number of FSC superannuation fund members are also members of the Association of Superannuation Funds of Australia (ASFA).

The FSC said the Standard applies to FSC superannuation members who are trustees (relevant licensees) holding a public offer or extended public offer licence) to operate a Registrable Superannuation entity under the provisions of the Superannuation Industry (Supervision) Act 1993.

Commenting on the Standard, FSC chief executive, Blake Briggs said that while compliance would not become compulsory until mid-2026, his organisation was encouraging its members to target early compliance.

“The superannuation industry is responsible for over $3.5 trillion in retirement savings for Australians and FSC members take their duty to protect their customers very seriously. Although there are already mitigation measures in place, this industry-first Standard provides our members with a consistent approach for dealing with scams and fraudulent activity,” Briggs said.

“The FSC Standard includes the need for multifactor authentication on all high-risk transactions as well as requiring funds to have clear policies and procedures for preventing and dealing with scams and fraudulent events. Under the Standard, customers will receive a high standard of risk-mitigation, with flexibility for vulnerable customers who are unable to access multifactor authentication.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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