QSuper has decided not to appeal against a court ruling that upheld a determination made by the Australian Financial Complaints Authority (AFCA).

The Brisbane-based fund launched an appeal to the Federal Court of Australia last December, saying AFCA “exercised an impermissible exercise of judicial power” when it decided a complainant should be refunded for overpaid life policy premiums.

But the Federal Court saw it differently, after considering submissions from all parties and the legislative frameworks setting out how AFCA decides on complaints or the conduct of trustees.

“QSuper considered the best interests of its membership and decided not to pursue an appeal,” the fund says in a statement.

“The Full Bench of the Federal Court, while upholding AFCA’s ruling, accepted that QSuper had likely complied with its statutory disclosure obligations in the case involving a member’s claim for a refund of part of insurance premiums for a period prior to the member personalising his cover.

“QSuper is concerned that the decision creates further obligations on superannuation trustees already compliant with laws regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority.”

According to the court judgement, AFCA’s powers to intervene are not concerned with the making of a  trustee’s decision.

“Rather, it was whether there existed any unfairness or unreasonableness in its operation in relation to the complainant,” the court says.

“In that way AFCA is not concerned with the legality or veracity of the exercise of power by the trustee – or in some cases, by the insurer – but only with the manner in which the decision operates.”