The Federal Government has either caved-into bank lobbying or is guilty of pursuing an ideological agenda on superannuation funds governance, according to Industry Super Australia (ISA).
At the same time as the Senate Economics Legislation Committee holds public hearings to consider the Government’s legislative changes, the ISA’s public affairs director, Matt Linden ridiculed suggestions by the Minister for Revenue and Financial Services, Kelly O’Dwyer that superannuation funds should live up to the same standards as banks.
“If it wasn’t so serious for the retirement savings of working Australians, the minister’s vow to make industry funds more like the banks would be funny,” he said.
“In the past two years, those financial institutions and related parties have paid around $480 million in refunds and compensation to customers as a result of admitted alleged misconduct,” Linden said. “The Government should be throwing the book at the banks – instead they’re changing the super rules for their benefit.”
Pointing to the fact that industry super funds had on average consistently outperformed bank-owned retail funds on member returns, he said the industry fund model stood testament to its governance model.
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.