Get industrial relations out of super, says FSC
The Financial Services Council (FSC) has moved further in its arguments around removing industrial relations from the superannuation arena, claiming the maintenance of default funds in awards is inappropriate.
In a follow-up submission to the Productivity Commission as part of its review of default funds under modern awards, the FSC has sought to blunt the arguments of the industry superannuation fund lobby that any MySuper products selected as default funds under modern awards must be "fit for purpose".
Instead, the FSC has sought to argue that in the modern workplace those covered by particular awards do not represent a homogenous set of employees.
Elsewhere in its submission, the FSC goes further in seeking to eliminate the influence of industrial relations from the superannuation equation, arguing that default funds should not be listed in awards because this would allow for the elimination of any Fair Work Australia or other process for listing or delisting funds "as every MySuper product would be an eligible default fund at the workplace level".
"This approach recognises the significant regulatory change delivered by MySuper where the default fund will be designed in legislation and licensed differently by the Australian Prudential Regulation Authority," it said.
"This option also represents an enduring approach which will not require further legislation, future reviews or regulatory change," the FSC submission said. "It would future-proof the MySuper framework as consolidation in the industry occurs."
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