Sherry denies monopoly claims

superannuation-funds/government/IFSA/

13 January 2009
| By Mike Taylor |
image
image
expand image

The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has denied that the Australian Industrial Relations Commission (AIRC) decision on award superannuation in any way limits the choices available to Australian employees.

Asked to respond to industry complaints that the AIRC decision has created a virtual monopoly for some funds recognised within awards, Senator Sherry said the decision “does not affect an employee’s right to choose the fund to which their superannuation is paid — all Australian employees will continue to be entitled to choose their own superannuation fund”.

However, industry groups, including the Investment and Financial Services Association (IFSA) are arguing that the “default fund” status granted to some funds offers those funds a distinct advantage over those not open to employers to choose as a default.

Sherry has argued that the AIRC’s decision has made little practical difference to the pre-existing arrangements with respect to default funds within awards and that it “would be unreasonable to impose complex superannuation decisions, with associated ‘red tape’ cost and legal liability, on all employers to select a default fund”.

He said employers and employees were also free to agree upon a different default fund to those set out in the modern award in any enterprise agreement that they make.

Senator Sherry said the Government was strongly encouraging employers, unions and employees to examine the long-term performance of superannuation funds, including the total amount of fees, in making decisions with respect to default funds.

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?...

2 months 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 3 weeks ago

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

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND