Pragmatic approach to reform needed: Shorten
It is important not to take legislation such as the recent round of superannuation reforms to Parliament without first forming an industry consensus, according to Minister for Financial Services and Superannuation Bill Shorten.
Speaking at the Association of Superannuation Funds of Australia (ASFA) national conference, Shorten said his regulatory reforms to the superannuation industry were the result of "robust negotiations and compromise", a process that he conceded could sometimes lead to complexity.
"The story of Australia is one of pragmatism, not ideology. Where there's compulsory savings ... the stewards of the money have an obligation to force down fees and charges and work towards better performance," he said.
However, he added that various sectors of the superannuation industry had been "worrying about perceived advantages in terms of distribution that another sector might have", rather than focusing on the overall goal of reforming the system.
In particular, he was disappointed by the constant "sniping" between industry super funds and retail funds. He added that there was general support for the Future of Financial Advice reforms, with the exception of "a few rogue planners".
But there was a general consensus that if the superannuation guarantee (SG) was to be increased to 12 per cent, the efficiency and equity of the system would have to improve, Shorten said.
The increase to the SG would put Australia in the box seat globally when it came to retirement savings, he said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
