Industry Super Network backs FOFA bill

The Industry Superannuation Network (ISN) has welcomed the reforms contained in the second tranche of the Government's Future of Financial Advice (FOFA) reforms, tabled in Parliament last week.

ISN chief executive David Whiteley said the bans on conflicted remuneration and the 'best interests' test would ensure that super products were recommended on their net performance, rather than sales commissions and other incentives paid to financial advisers.

The reforms contained in the FOFA bills were a set of "moderate, independent measures" that had been developed through extensive consultation with the industry, said Whiteley.

He also praised the Government's move to raise the superannuation guarantee from 9 per cent to 12 per cent.

"Increasing the Superannuation Guarantee contribution to 12 per cent will add tens of thousands of dollars to the retirement income of average Australians," Whiteley said.

The ISN also supported the Government's moves to increase the efficiency of the superannuation system through tax incentives for low income earners and the removal of commissions in super, Whiteley added.