ISA signals renewed policy battle with FSC
Industry Super Australia (ISA) has sent a clear signal to the Financial Service Council (FSC) that it will not be backing down on defending the default funds regime in the face of a re-elected Turnbull Government.
While the FSC has called on the newly reappointed Minister for Financial Sercices, Kelly O'Dwyer, to prioritise the reintroduction of legislation aimed at injecting more choice into superannuation, the ISA has made clear it is ready to resume battle on the issue on the basis of protecting members' best interests.
ISA deputy chief executive, Robbie Campo, welcomed the reappointment of O'Dwyer as the responsible minister but drew a line in the sand with respect to default funds.
She signalled the ISA's support for elements of the Government's Budget changes but made clear that the ISA would be continuing to pursue changes within the financial planning industry.
"New safeguards to address conflicted remuneration in the financial services industry, stronger product disclosure requirements and higher professional standards for financial planners are also essential, to ensure consumers' best interests are being strengthened in the wake of life insurance and other scandals in the ‘for-profit' sector," Campo said.
"ISA also looks forward to an evidence-based discussion regarding the Productivity Commission's inquiry into the efficiency of the superannuation system and processes for default fund selection. The interests of members must remain front and centre to ensure super fund members, whether engaged or not, are well-served by quality, high performing funds."
"A large number of Australians rely on high-performing default funds to ensure a comfortable and dignified retirement. However, the poorer performance of many choice products and many SMSFs should flag the need for more effective consumer protections for members leaving or outside default arrangements.
"The best interests of members must remain firmly at the centre of any proposal to widen and strengthen the existing default safety net."
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