The Association of Superannuation Funds of Australia (ASFA) has welcomed the deferral of Royal Commission implementation, having previously advocated for a delay.
The association said the superannuation industry, in particular, had been heavily involved in the COVID-19 pandemic as a result of the early release of super measures.
ASFA said in a statement: “Superannuation funds have dedicated their focus towards effectively delivering the vital services their members need at this difficult time. This sensible deferral by Government will ensure funds can continue to focus on supporting the immediate needs of their members.
“Maintaining the stability of the superannuation system over the course of the pandemic has been paramount, especially while administering over $9 billion in early release of super payments to more than one million Australians.”
The implementation of the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was deferred last week to allow firms to deal with the economic fall-out of the COVID-19 pandemic.
Recommendations due in June would be deferred until December while those which had been due in December would be deferred until 30 June, 2021.
The delay would also allow the Government to assess if the industry’s handling of the pandemic had impacted any Royal Commission recommendations or if anything could be learnt from it, ASFA said.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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