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RECOMMENDATION
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PUBLIC ADVOCATE NOTE ON CURRENT STATUS
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QUEENSLAND PUBLIC TRUSTEE
UPDATE 10 MARCH 2023
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1. Undertake a full fees and charges review
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Accepted and in progress
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Completed
- Specialist consultancy led independent review of Public Trustee’s fees and charges, including public consultation, has been completed and presented to Government for consideration
- Introduced Fees and Charges Integrity and Governance framework, to increase awareness and clarity about roles, responsibilities, policies and procedures that support integrity and governance around managing our fees and charges schedule
- Removed principal place of residence from asset test and removed charge to customers where expert financial advice for the customer results in a recommendation to invest in only Public Trustee financial products, simplifying the fee regime as well as reducing charges to customers
- Continued to build our awareness and capability with respect to integrity, supported through our training and awareness program, ethics and integrity unit and general practices such as complaints management
- The external review, in the context of the Public Advocate’s recommendations, has been completed and tabled in Parliament. Acceptance and implementation of recommendations arising from that review are subject to further consultation, regulatory impact assessment processes and Government approval
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2. Improve the transparency of fees and charges
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Accepted and in progress
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Implemented
- Have provided greater clarity and accessibility to administration clients about fees and charges in multiple ways including the items that have been outlined below
- Have built on our suite of tools and guides that provide transparency and clarity for customers regarding our fees and charges, including a ready reckoner to explain Public Trustee fees and charges in plain language, and an online Fees Estimator for deceased estate fees
- In consultation with current and previous customers, developed the Customer Budget document to explain Public Trustee processes in plain language and are now designing a new Financial Statement to improve clarity for customers
- Established and implemented a Structured Decision-Making Framework. This helps to ensure our customers’ human rights are protected and their wishes are considered, fostering customer participation in the management of their affairs, and transparency and accountability
- Established a Customer Advocate Office, a national first among state trustees, to help customers resolve issues
- Improved our website and accessibility, by continuing to grow plain language information we provide customers and introduced online portals for appointment bookings, complaints and compliments
- Published independent fees and charges review report
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3. Consider the effect of fees when appointing the Public Trustee as financial administrator
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Under consideration by Government
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- Public Trustee is appointed where deemed most appropriate, often when there are no family or friends to step in to take up the financial administration. In cases where a Public Trustee appointment is likely, Public Trustee officers attend the Queensland Civil and Administrative Tribunal specially to answer questions on fees and charges. Public Trustee officers also support Tribunal reviews by providing Tribunal briefings, laying out Public Trustee fees and charges within the customer budget context. Further work is underway to ensure Public Trustee representatives attend as many of these hearings as possible and review how the Tribunal’s work on behalf of our customers can be better supported
- Public Trustee established a Customer Interests Safeguard Committee to identify opportunities to improve interactions with the Queensland Civil and Administrative Tribunal and to provide better outcomes for customers
- Public Trustee’s Financial Independence Pathway Program supports customers’ financial management skills, and to apply for a declaration of capacity with the Queensland Civil and Administrative Tribunal, removing the need for Public Trustee’s appointment
- Public Trustee’s expanding suite of transparent and clear information, tools and guidance about fees and charges is publicly available and accessible
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4. Reconsider the practice of routinely obtaining external financial advice
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Accepted and in progress
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Implemented
- Completed reconsideration of the practice of seeking of external financial advice, and identified the significant benefit to some customers from expert external support, and removed charge to customers where expert financial advice for the customer results in a recommendation to invest in only Public Trustee financial products, simplifying the fee regime as well as reducing charges to customers
- Completed an open procurement process to guide and secure the appointment of a provider for financial planning, investment administration and aged care funding advice, including considering investment products other than Public Trustee’s
- Confirmed that obtaining external professional assistance to provide advice in respect of Total Permanent Disability (TPD) insurance claims is the most cost-effective approach
- Established a network of legal experts and practices to seek advice and guidance for the Official Solicitor-Customer Legal Services in developing and improving its policies and procedures
- Established the Customer Advocate Office, an important interface between the Public Trustee and customers and their support networks
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5. Discontinue general fees for incidental outlays
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Accepted and in progress
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Implemented
- Considered in specialist consultancy-led independent review of Public Trustee’s fees and charges (completed)
- Incidental outlays and property fees are now not applied to financial management customers
- Fees and charges are subject to Government consideration including as part of any regulatory impact assessment processes
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6. Seek a Goods and Services Tax exemption
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Accepted and in progress
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- Public Trustee’s application to the Australian Taxation Office for GST exemption has been lodged
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7. Review Community Service Obligations
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Accepted and in progress
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Completed
- Community Service Obligations considered in independent review of fees and charges
- The findings and recommendations of the review are subject to Government consideration
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8. Discontinue client subsidisation of Community Service Obligations
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Accepted and in progress
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Completed
- Community Service Obligations are funded from interest earned on investments, not customer fees and charges, and were examined in the specialist consultancy-led independent review of fees and charges (completed)
- Specialist consultancy-led independent review of fees and charges found that Public Trustee delivery of financial administration services is well below cost
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9. Limit the level of Community Service Obligations
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Accepted and in progress
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Completed
- Community Service Obligations are funded from interest earned on investments, not customer fees and charges, and were examined in the specialist consultancy-led independent review of Public Trustee’s fees and charges (completed and published)
- The findings and recommendations of the review are subject to Government consideration
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10. Review fee rebate and financial hardship provisions to ensure client assets are not depleted by fees and charges
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Accepted and in progress
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Completed
- Changed rebate calculation to remove customer’s primary residence from asset test, increasing potential customer rebates
- Range of fees and charges funding models, such as capacity to pay, and Community Service Obligations considered in completed and published specialist consultancy-led independent review of fees and charges
- The findings and recommendations of the review are subject to Government consideration
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11. Do not profit from administration clients unless expressly permitted by law
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Further consideration by Government
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- Public Trustee strongly agrees that it must always (and has confirmed that it does) comply with its legal and fiduciary duties in dealing with administration customer funds, including the obligation not to “profit” from those funds
- Public Trustee is committed to encouraging customers to make use of its new industry-leading Financial Independence Pathway Program, designed to support customers to achieve a declaration of capacity with the Queensland Civil and Administrative Tribunal and remove the need for the Public Trustee’s appointment
- Completed specialist consultancy-led independent review considered reasonableness of Public Trustee’s fees and charges, finding them well within benchmarks and often below cost
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12. Improve transparency of Public Trustee revenue sources
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Accepted in part and in progress
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Implemented
- Every year, published Annual Report outlines the revenue sources, complies with Australian Accounting Standards and Government Reporting guidelines, and subject to annual Queensland Audit Office audit
- Published fact sheet about how customer administered funds are invested and continues to update fees and charges information on website
- Established Customer Advocate Office as important customer interface that improves transparency
- Established and embedded Structured Decision-Making Framework, supporting customer involvement in all decisions relating to them, including investment
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13. Clearly report the fees and costs of managing Public Trustee investments
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Accepted in part and in progress
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Implemented
- Every year, published Annual Report outlines expenses and outgoings, complies with Australian Accounting Standards and Government Reporting guidelines, and subject to annual Queensland Audit Office audit
- Built on tools and guides that provide transparency for customers, including ready reckoner to explain fees and charges in plain language, and published fact sheet on community administered funds investment
- Established Customer Advocate Office as important customer interface that improves transparency
- Established and embedded Structured Decision-Making Framework, supporting customers’ involvement in all decisions relating to them including investment
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14. Stop requiring administration clients to pay double charges on their funds
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Not accepted
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No further action required
- Public Trustee has confirmed that each fee is for a separate service that customers are not double charged
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15. Limit the amount of Public Trustee surpluses and reserves
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Further consideration by Government
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- Public Trustee does not receive a funding allocation from government
- Public Trustee provides generous returns on client funds, in accordance with its published Customer Investment Strategy, returning to customers an additional 0.10% (+ rounding) over the average rates offered across the four major banks
- While Public Trustee continues to find and implement improvements leading to further efficiency gains, sufficient reserves must be retained for Public Trustee to operate financially independently from government support
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16. Review investment practices and discontinue activities that do not directly benefit clients
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Accepted and in progress
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Implemented
- Reviewed investments practices and have ensured systems are in place to benefit clients
- In addition, based on the review and assurance, changes have been progressed to threshold assessments and investment approaches, emerging from independent review of Customer Investment Strategy
- All investment practices and Prudent Person Manual are regularly reviewed to ensure customer benefit and prudential care are the guiding considerations in investing funds
- Provided further channels for understanding customers and making improvements, through establishment of Customer Advocate Office, in addition to regular business practices including Structured Decision-Making Framework
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17. Review and update the Prudent Person Manual
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Accepted and in progress
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Implemented
- Reviewed and updated Prudent Person Manual, with established review cycle
- Amended Customer Investment Strategy, prioritising capital preservation over investment growth (while acknowledging that individual customer investment strategies may vary to suit specific circumstances)
- Established additional important customer interface through Customer Advocate Office
- Established and embedded Structured Decision-Making Framework to ensure customers are involved in all decisions relating to them
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18. Publish the Prudent Person Manual
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Accepted and in progress
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Implemented
- Revised Prudent Person Manual, with continued regular review cycle
- Published on the Public Trustee’s website
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19. Review position on conflict transactions
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Accepted in part
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Completed
- Reviewed position and it can be confirmed that the Public Trustee has always been and remains fully compliant with trustee and fiduciary duties and responsibilities regarding the common fund for its customers
- Continued customer benefit through investment structures and arrangements providing economies of scale
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20. Review the practice of only investing in Public Trustee investment products
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Accepted
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Finalised
- The Public Trustee has reviewed its practice of investments and can confirm that it does not exclusively invest in the internal investment products
- Removal of charge for financial advice where advice solely recommends investment in Public Trustee products
- Completed open procurement process to secure provider of financial planning advice
- Continued arrangement for expert investment advice to consider a range of investment products outside of the Public Trustee’s products, depending on a customer's individual circumstances, with a significant portion of customer assets out of the common fund and growth trust and one of the most open investible systems of all state trustees nation-wide
- Continued transparency of investments in published Annual Report
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21. Adopt a new client investment strategy
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Accepted and in progress
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Implemented
- Completed and developed a new customer investment strategy in accordance with industry best practice
- Continuing to review all agreements with providers of direct services to customers, to ensure customers are receiving value for money
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22. Reconsider routinely obtaining external financial advice for certain types of assets
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Accepted in part
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Implemented
- Reconsidered as per recommendation and have determined to continue to obtain external financial advice only where reasonable and appropriate, to further the customer’s interests, comply with fiduciary and statutory duties, and considering the customer’s individual circumstances
- Have implemented a process to ensure that customers are not charged a fee for external financial advice in circumstances where that advice recommends that all investment funds be only in Public Trustee products
- Continuing to implement revised Customer Investment Strategy
- Continuing to review all agreements with providers of direct services to customers, to ensure customers are receiving value for money
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23. Obtain advice about refunding financial advice fees
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Accepted in part
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Finalised
- Continuing to obtain external financial advice only where reasonable and appropriate, to further the customer’s interests, comply with fiduciary and statutory duties, and considering the customer’s individual circumstances
- Have implemented a process to ensure that customers are not charged a fee for external financial advice in circumstances where that advice recommends that all investment funds be only in Public Trustee products
- Continuing to implement revised Customer Investment Strategy and to review all agreements with providers of direct services to customers, to ensure customers are receiving value for money
- Completed open procurement process, to secure provider of financial planning advice, continuing to require expert investment advice to consider investment products outside of Public Trustee’s products, depending on a customer’s individual circumstances, and with that expert advisor able to recommend an approach which differs from the Customer Investment Strategy
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24. Review the role and operations of the Official Solicitor
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Recommendation 24 (except 24 c) – Accepted in part and in progress
Recommendation 24 (c) – Joint Government and Public Trustee Recommendation – Further consideration by government
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Implemented
- Separated Official Solicitor function into Official Solicitor-Corporate Legal Services, and Official Solicitor-Customer Legal Services, better delineating services and advice between customers and internal clients, and in accordance with Governance and Structure Review
- Established requirements for all permanently appointed lawyers working in an Official Solicitor Office to hold a current practising certificate, in accordance with introduced policy and as included in all new Position Descriptions
- Established a legal expert network and practices to seek advice and guidance for the Official Solicitor-Customer Legal Services in developing and improving its policies and procedures
- Continued review of operations, leading to establishment of working group to review processes regarding family provision applications as well as the trial of new processes for file management and oversight by managing lawyers
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25. Develop a policy to support administration clients to make complaints about the Public Trustee
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Accepted
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Implemented
- Published ‘Your Complaints Journey’ brochure to clearly explain customer complaint process, and complaint handling resources in plain English
- Reviewed Complaints Management Policy, implemented accessibility, effectiveness, and responsiveness enhancements to complaints management system and worked to increase complaint handling times and monitoring
- Increased staff training and development in customer service, and complaints handling
- Established a Customer Advocate Office and an independent complaint review mechanism, both of which are a national-first for state trustees, to support customers to resolve issues and complaints
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26. Amend legislation so Public Trustee solicitors are overseen by the Legal Services Commission
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Further consideration by Government
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- Changes to legislation are a matter for Queensland Government
- Public Trustee established requirements for all permanently appointed lawyers working in an Official Solicitor Office to hold a current practising certificate, in accordance with introduced policy, with all such officers now holding current certificates
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27. Review Official Solicitor policies and practices
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Accepted and in progress
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Implemented
- Separated Official Solicitor function into Official Solicitor–Corporate Legal Services, and Official Solicitor–Customer Legal Services, in accordance with Governance and Structure Review, better delineating services and advice between customers and internal clients
- Established Structured Decision-Making Framework which ensures customers and their support networks are consulted, where possible, before commencing any legal process
- Continued to review all legal fees charged to customers before invoices are issued, and implemented process for trust officers to query legal fees charged
- Continued review of operations, leading to establishment of working group to review processes regarding family provision applications as well as the trial of new processes for file management and oversight by managing lawyers
- Established processes for customer to attend a Public Trust Office and review legal advice, protecting customer interests and legal professional privilege
- Continued discretion to not charge legal fees to a customer in some instances or provide a rebate on fees
- Established legal expert network and practices to seek advice and guidance for the Official Solicitor in developing and improving its policies and procedures
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28. Consideration for the review of Public Trustee fees and charges
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Accepted in part
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Completed
- Completed and published specialist consultancy-led independent review of Public Trustee’s fees and charges
- Review overseen by Fees and Charges Steering Advisory Board which included representatives from Department of the Premier and Cabinet, Queensland Treasury, Department of Justice and the Attorney-General, Department of Seniors, Disability Services and Aboriginal and Torres Strait Islander Partnerships, the Integrity Commissioner, and an independent member
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29. Amend legislation to clarify how the Public Trustee can invest client funds
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Further consideration by Government
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- Changes to legislation are a matter for Queensland Government
- Ongoing review and improvement of Public Trustee’s investment strategies and how they are communicated, will continue
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30. Consider additional oversight mechanisms
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Accepted
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- Queensland Government has amended the Public Trustee Act 1978 to establish the Public Trustee Advisory and Monitoring Board
- Increased governance and accountability measures established by Public Trustee through its Customers First Agenda, including the role of the Customer and Government Reference Groups, will continue to strengthen oversight
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31. Update the Public Trustee Act to better acknowledge rights and interests of people with impaired decision-making capacity
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Further consideration by Government
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- Changes to legislation are a matter for Queensland Government
- Continued consolidation of 7-Step Structured Decision-Making Framework introduced by the Public Trustee in 2020 to strengthen customer engagement in decisions which affect them, has been examined and found by La Trobe University Living with Disability Research Centre, as successfully implementing a new more rights based and customer centric way of working, and training delivered to staff having had a positive impact on their practice
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32. Amend legislation to ensure the Public Trustee is an appointment of last resort and the appointment is periodically reviewed
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Further consideration by Government
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- Changes to legislation are a matter for Queensland Government
- Customer Interests Safeguard Committee, established by Public Trustee, will continue to identify opportunities to improve interactions with Queensland Civil and Administrative Tribunal and provide better outcomes for customers
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