Industry funds break ranks
Two industry superannuation funds have broken ranks to question why the industrial relations judiciary in the form of the Fair Work Commission (FWC) should be involved in the selection of MySuper products for approval as default funds under modern awards.
In a joint submission filed by Independent Fund Administrators & Advisers Pty Ltd , the two Queensland-based funds, Club Super and QIEC Super, have directly pointed to the duplication when the FWC assesses the merits of a MySuper product already approved by the Australian Prudential Regulation Authority (APRA).
The submission said that such an approach seemed unnecessary and suggested that it would be more appropriate for the FWC “to accept that a MySuper product approved by APRA is automatically suitable for inclusion on the approved 'Default Superannuation List’”.
It said that the FWC application process could then concentrate on Trustee Boards establishing to the FWC’s satisfaction that their MySuper product is appropriate for inclusion in a particular modern award, based on the MySuper product’s suitability and relevance to the industry and employees covered by the modern award.
The submission from the two Queensland funds is at odds with the approach of many other industry funds, particularly those aligned with Industry Super Australia (ISA), and appears closer to the approach of the Financial Services Council (FSC) which has argued that all approved MySuper funds should be eligible for selection as default funds.
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