The Government should act immediately to fix the current closed shop, anti-competitive arrangements for the selection of default superannuation funds, according to Shadow Assistant Treasurer and Shadow Minister for Financial Services and Superannuation, Mathias Cormann.
Cormann said the Government should not use the current Productivity Commission review as an excuse to do nothing for another year, and was critical of the time already taken by the Government to initiate the process.
The current process is not transparent, not competitive and inappropriately favours union-dominated industry superannuation funds, and should be fixed as soon as possible, he said.
Coalition members of the Parliamentary Joint Committee on Corporations and Financial Services recommend that any authorised MySuper product should be able to compete freely in the default superannuation market, Cormann said.
The Coalition has also said the MySuper bills could be improved by:
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
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