Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (RESOLUTION OF COMPLAINTS) REGULATIONS (AMENDMENT) 1996 NO.151

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.