FSC welcomes changes to default fund selection

financial services council productivity commission productivity commission report superannuation

11 January 2019
| By Hannah Wootton |
image
image
expand image

The Financial Services Council (FSC) has shown itself as one of the few industry bodies to endorse the Productivity Commission’s final report on superannuation since its public release this morning, as it welcomed its changes to default super selection processes.

As industry fund bodies express their disappointment with final report, FSC chief executive, Sally Loane, praised the Commission’s changes to default superannuation fund selection to see employers and unions removed from the process.

“Taking default superannuation out of the industrial relations system and putting choice into the hands of consumers should be the cornerstone of a modern superannuation system,” Loane said.

The FSC also welcomed the Commission’s call for a binding and enforceable code for insurance in super, noting that its own superannuation trustee members would be bound by its Life Insurance Code of Practice from 30 June, 2021.

Loane expressed concern however, that the Commission’s determination to stand by its recommendation to have just 10 default super options could “create a monolithic concentration of funds, stifle competition and create huge barriers for innovate new products”.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

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

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 18 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 22 hours ago