The Superannuation Complaints Tribunal (SCT) does not receive any more complaints from self-insuring funds than any other type of superannuation fund but the Australian Prudential Regulation Authority (APRA) said it will continue to scrutinise funds that do so.

“We will still ask them questions about their risk-management policies,” Ramani Venkatramani, general manager superannuation, said last week. APRA will still ask what the fund would do in particular situations. The regulator will also not budge on its requirement for public offer funds to have external insurance. Graham McDonald, SCT chairperson, said “I would have to say it is fairly even” when asked if the tribunal received more complaints from self-insuring funds. APRA last week launched a best practice paper on death benefits for superannuation trustees, which highlights some of the difficulties superannuation funds face when members die. Michaela Anderson, ASFA director, policy and research, said: “This was one thing trustees spent such a large amount of time on that we thought we should help.” McDonald said he was surprised that the take-up of binding nominations had been so minimal. “There hasn’t been a great take-up of binding nominations since 1999. I would have thought by now there might have been more interest from members. Binding nominations can’t be challenged under the inheritance law,” McDonald said.

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