POWERED BY MOMENTUM MEDIA
ISA warns on defaults and ‘inappropriate advice’
Industry Super Australia (ISA) has again differed with the Productivity Commission (ISA) and has warned against people being defaulted into only one superannuation fund citing, amongst other things, the danger of “inappropriate advice”.
In a late submission filed with the PC, ISA said it did not support members being defaulted into one fund for life.
“The risk that disengaged and low-information members will be sold, nudged or defaulted into poor quality funds by their bank, their employer or through inappropriate advice is too great,” the submission said.
“To fulfil the collective social policy purpose of compulsory superannuation, it is appropriate for government to intervene strongly to ensure members are protected from such risks. We have previously explained how this can be achieved in the context of a strengthened industrial safety net,” it said.
The ISA noted in its submission that the PC had indicated that it was trying to get rid of unintended multiple accounts by having members, new job entrants default once and then auto-consolidating accounts thereafter.
It noted that the PC had also referred suggestions that members had one account that followed them through their life, with the member taking their balance with them and rolling it over with every next job.
Recommended for you
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
The QAR lead reviewer has told a Senate committee that the government’s demands of super funds conflict with their original purpose.
The Joint Associations Working Group has identified four key issues with the $3 million super tax that need to be addressed before the bill is legislated, including the major concern of taxing unrealised capital gains.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
Industry Super Funds have had their members of each respective Industry Fund defaulted into an Industry Funds that are disengaged and have no choice to tell there employers where they want their retirement saving directed “The risk that disengaged and low-information members will be sold, nudged or defaulted into poor quality funds"
the double standards and hypocrisy of the statement is crazy they even put this stuff in the media. Effectively they are tell you the consumers that you they don't want you to have choice and just want to keep their default arrangements.