Industry fund rejects Royal Commission calls
One of Australia's largest not-for-profit superannuation funds, UniSuper has backed the Government's move to better fund the Australian Securities and Investments Commission (ASIC) rather than pursue a Royal Commission into the banking and financial services industry.
The fund, which represents universities-based members including academics, stated that a Royal Commission might have had a negative financial impact and served as a distraction to management among the major banks.
UniSuper chief executive, Kevin O'Sullivan, said the fund had confidence in the current regulatory environment that applies to the financial services sector, including superannuation.
"All current industry issues were reviewed as part of David Murray's Financial System Inquiry, relevant recommendations have been made, and they now deserve the appropriate time and resources to be implemented," he said.
O'Sullivan said UniSuper had noted the Government's announcement of further funding to better support existing regulatory activities, adding that the mechanisms available to Government to address structural issues and allegations of misconduct were already in place through the existing regulators and organisations such as the Productivity Commission.
"ASIC is well placed to deal with allegations of misconduct in individual firms, as it has both extensive investigative and enforcement powers, as well as powers to secure compensation for affected individuals," he said.
"As a significant institutional investor in some of Australia's largest financial institutions on behalf of its 400,000 members, UniSuper has indicated it would be concerned about the negative financial impact and management distraction which could arise from a comprehensive Royal Commission into the financial services sector, so soon after the Murray Inquiry," O'Sullivan's statement said.
"The test for us at UniSuper is always ‘is this in the best interests of our members?'" he said. "We do not believe that a Royal Commission into the sector passes this test at this stage in the lifecycle of the current model."
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