Coalition commitment to superannuation benchmarks

default-funds/senator-mathias-cormann/mysuper/AIST/financial-services-industry/superannuation-funds/superannuation-industry/australian-prudential-regulation-authority/financial-services-council/federal-opposition/

12 April 2012
| By Staff |
image
image
expand image

The Federal Opposition has committed to working with the financial services industry and the regulator, the Australian Prudential Regulation Authority, to develop better performance benchmarks for superannuation funds.

The commitment was made by the Opposition spokesman on financial services, Senator Mathias Cormann, who said such information would represent a vital underpinning for necessary changes to the default funds under the modern awards regime.

He said new industry-wide benchmarks and definitions would include information to help employers, particularly small businesses, select default funds.

Cormann's undertaking has come at the same time as submissions lodged with the Productivity Commission have revealed a substantial divide within the superannuation industry between the retail funds sector and the industry and not-for-profit funds.

While both sides of the argument have backed performance as being the most important criteria for the selection of default funds, submissions lodged by individual industry funds and the Australian Institute of Superannuation Trustees have argued against all MySuper funds being eligible for selection as default funds.

The industry funds submissions have argued for a continuing role for Fair Work Australia, with Hostplus actually arguing that the number of eligible MySuper funds would make the process too complicated for employers.

For its part, the Financial Services Council has argued there exists little requirement for the involvement of the industrial judiciary, and that all MySuper funds should be eligible for selection.

Cormann said the Coalition supported all MySuper funds being capable of selection as default funds.

"There is no need for an additional secretive and discredited process through Fair Work Australia to further determine which MySuper products should be included as default funds under various modern awards," he said.

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 1 week ago

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

2 months 1 week ago

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

4 months 1 week ago

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

1 day 13 hours 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...

4 weeks ago

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

6 days 12 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND