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ASIC takes Telstra Super to court over complaint deadlines
Telstra’s superannuation arm will face a court for allegedly failing to assist customers with their complaints within the right time frames.
Naomi Neilson
The Australian Securities and Investments Commission (ASIC) said on Monday (6 November) it had filed Federal Court civil penalty proceedings on the grounds Telstra Super contravened its obligations under the Corporations Act 2001 when it failed to comply with its internal dispute resolution requirements.
ASIC deputy chair Sarah Court said the financial services industry should have “effective dispute resolution procedures in place” and added it was important these companies also had the “systems and resourcing to ensure they are being put into practice”.
“Financial service providers need to prioritise dispute resolution procedures to properly protect customers,” Ms Court said.
The regulator alleged Telstra Super failed to comply with its internal requirements in 40 per cent of cases, including 106 complainants who were not responded to within the 45-day deadline.
A further 85 customers were not informed of why there was a delay, and 22 complainants were not made aware about their right to take their complaint to the Australian Financial Complaints Authority.
ASIC also alleged Telstra Super was not efficient, honest and fair when it sent delayed notifications to complainants “when it was not justified to do so”, and it did not have the adequate resources in place to comply with its internal dispute resolution procedures.
ASIC is seeking declarations, pecuniary penalties and other orders against Telstra Super.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
