Federal Court finds Telstra Super breached internal dispute requirements
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The news: Telstra Super, now known as Tetra Servicing, was found by the Federal Court to have failed to comply with its internal dispute resolution procedures.
The context: The Federal Court found that Telstra Super failed to respond to one-third of complaints within the mandatory 45-day timeline made between 22 October 2021 and 13 January 2023. The court noted that in approximately 30% of those cases, the company took more than 100 days to provide a response.
The court did not find that Telstra Super failed to do all things necessary to provide efficient financial services, nor did it find that it had failed to adequately resource its internal dispute resolution process.
This proceeding marks the first case ASIC has brought under the internal dispute resolution requirement that came in effect in October 2021, which mandates superannuation trustees to respond to most complaints within 45 days.
What they said: “This outcome sends a clear message that compliance with mandatory internal dispute resolution standards is not optional, but a legal obligation,” ASIC deputy chair Sarah Court said.
“Financial service providers must invest in robust systems and devote adequate resources to ensure complaints are managed promptly and fairly. This protects consumers from harm and underpins trust in the superannuation system,” she added.
Editor’s note: This briefing previously said the court ruled that Telstra Super failed to provide efficient financial services. This was not correct.
The source: ASIC
