FSC refutes ISA incentive claims

FSC/industry-super-australia/superannuation-funds/financial-services-council/industry-funds/

28 July 2014
| By Staff |
image
image
expand image

The Financial Services Council (FSC) has hit back at Industry Super Australia's (ISA's) claims that banks could offer employers incentives for default fund selection, saying such action would be explicitly against the law.

The Superannuation Industry Supervision (SIS) Act prohibits any enticements in the form of discounts, rebates and write-offs, according to FSC CEO John Brogden, which makes the ISA's fears unwarranted.

He said the legislation applies to both retail and industry super funds.

Brogden said the statements could disguise a fear of competition from industry funds.

"Superannuation funds that offer competitive products and provide good service to their members have nothing to fear from competition," he said.

"The best outcome for consumers is for funds to be forced to compete for default superannuation contributions," he added.

 

 

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