The Federal Government has either caved-into bank lobbying or is guilty of pursuing an ideological agenda on superannuation funds governance, according to Industry Super Australia (ISA).
At the same time as the Senate Economics Legislation Committee holds public hearings to consider the Government’s legislative changes, the ISA’s public affairs director, Matt Linden ridiculed suggestions by the Minister for Revenue and Financial Services, Kelly O’Dwyer that superannuation funds should live up to the same standards as banks.
“If it wasn’t so serious for the retirement savings of working Australians, the minister’s vow to make industry funds more like the banks would be funny,” he said.
“In the past two years, those financial institutions and related parties have paid around $480 million in refunds and compensation to customers as a result of admitted alleged misconduct,” Linden said. “The Government should be throwing the book at the banks – instead they’re changing the super rules for their benefit.”
Pointing to the fact that industry super funds had on average consistently outperformed bank-owned retail funds on member returns, he said the industry fund model stood testament to its governance model.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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