ASIC urged to amend class order to include age pension


Two key organisations have taken issue with an Australian Securities and Investments Commission (ASIC) decision not to grant superannuation funds class order relief if they include age pension calculations when providing superannuation forecasts.
Both the Association of Superannuation Funds of Australia (ASFA) and the Institute of Actuaries have written to ASIC arguing strongly that the age pension can and should be included in superannuation forecasts.
In a letter to ASIC signed by ASFA chief executive Pauline Vamos and Actuaries Institute chief executive Melinda Howes, the two organisations insist that the age pension will be an important part of superannuation fund members' post retirement income.
"For these members, any consideration of the adequacy or otherwise of their income in retirement without having regard to the age pension is meaningless," the letter said.
It said that, accordingly, ASIC should carefully reconsider the issue and amend the class order to take account of the age pension.
The letter said that it should be up to superannuation fund trustees to decide whether the age pension was taken into account in calculations, but it was likely to be important for a majority of superannuation fund members.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.