Clearing houses risk being disadvantaged

ASFA/association-of-superannuation-funds/federal-government/treasury/superannuation-funds/

14 January 2010
| By Mike Taylor |
image
image
expand image

The Federal Government needs to ensure that its appointment of Medicare Australia as its approved superannuation clearing house does not unnecessarily disadvantage other companies providing clearing house facilities, according to the Association of Superannuation Funds of Australia (ASFA).

In a submission to the Treasury dealing with the draft legislation that will underpin the new central superannuation clearing house, ASFA warned that the draft legislation created an uneven playing field between the approved (Medicare) clearing house and other providers of clearing house services.

It said other providers were being disadvantaged because payments received by the Medicare clearing house would be treated as if they had been received by a complying fund, and the Medicare clearing house would not be subject to the Corporations Act licensing and disclosure regime.

"ASFA is concerned that the above features, combined with the absence of a limitation on the number of employees that an employer may have and still use the approved clearing house, has the potential to deliver commercial damage to existing providers of clearing house services," the ASFA submission said.

It argued to overcome these problems, the legislation needed to be amended to provide a path via which private sector organisations could achieve approved clearing house status and ensure employers could not use the free service if they had more than 20 employees.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS