AUSTRALIA: Some Australian workers who invested in the collapsed Shield Master Fund and First Guardian Master Fund through their Superannuation savings may be running out of time to file a complaint, with some needing to act as early as March 31 to avoid missing out on compensation.
Australia’s corporate watchdog, the Australian Securities and Investments Commission (ASIC), started contacting affected workers earlier this month to ensure they are aware of the situation and their rights.
The notification included a link to takeyoursuperback.com, run by Super Consumers Australia, to provide further information to affected investors.
Yahoo Finance reported that more than 11,000 Australian investors lost over A$1 billion (S$893 million) from their superannuation, an Australian employer-sponsored retirement account, similar to Singapore’s Central Provident Fund (CPF), but fewer than 2,000 have lodged complaints with the Australian Financial Complaints Authority (AFCA).
The Australian superannuation scheme lets members invest their retirement money in assets of their choice. The scheme also offers generous tax breaks, with earnings and withdrawals sometimes taxed at very low rates or even zero in retirement.
In November last year, the Super Members Council pushed back against government plans to use Australia’s A$4.3 trillion in unclaimed super to compensate victims, saying it would mean “everyday Australians” footing the bill.
Meanwhile, Financial Services Assistant Treasurer and Minister Daniel Mulino was reported to be reviewing the Compensation Scheme of Last Resort (CSLR), which can pay victims up to A$150,000 amid rising claims.
The CSLR is funded by annual levies from financial advisers, banks, and other lenders, including stock and mortgage brokers.
In a LinkedIn post on Wednesday (Feb 11), Dr Mulino shared details of the Superannuation (Building a Stronger and Fairer Super System) Bill, which aims to make superannuation more sustainable and ensure Australian workers a “dignified retirement.”
Under the reforms, Australians earning less than A$45,000 a year will receive an A$810 boost to their retirement savings./TISG
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