Retirement
Financial sector freedom integral to creation of new super body
A superannuation industry group is advocating for the creation of a “truly independent” consumer advocacy body for superannuation in Australia.
Financial sector freedom integral to creation of new super body
A superannuation industry group is advocating for the creation of a “truly independent” consumer advocacy body for superannuation in Australia.
In a written submission in response to the Retirement Income Review currently being carried out by the Treasury, the Australian Institute of Superannuation Trustees (AIST) has indicated its support for measures that “better enable members to navigate the superannuation system and provide additional member input into policy discussions”.
It argued that such an advocacy body “must operate in a way that is truly independent and justly represents all consumers, including vulnerable Australians”.
AIST tempered such a stance by highlighting it as being “worth noting that in contrast with other industries, the best interests of superannuation members must already be prioritised by superannuation funds”.
It did concede, however, that as highlighted by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, “an inherent conflict exists between the commercial interests of ‘for-profit’ superannuation funds and a trustee’s obligations to give priority to duties to, and interests of, the beneficiaries”.
In supporting the creation of a consumer-led advocacy body, the AIST provided a number of recommendations for the structure and management of such an organisation, stating that it should be a semi-government body that acts independently and free of allegiance with, or reliance on, the financial service sector.
As a result, the AIST expressed that it should also exhibit financial freedom from the sector, with the group’s board and committee comprising of experts from outside the financial services sector.
It then called for the new body to be accountable, “preferably to the same body as financial services regulators, and to Parliament by way of regular committee hearings”.
Noting the creation of an advocacy group being a recommendation of the Productivity Commission, the AIST argued that this body “should operate in a way that provides services not currently available to Australian superannuation fund members in order to continue to serve their best interests” in its submission.
“The body should be structured in a way that uses expert knowledge to target both vulnerable and young Australians to increase [engagement with superannuation and education around financial literacy] through programs, campaigns and initiatives.”
“These actions should offer a unique approach in targeting these Australians to increase their knowledge and interest in superannuation,” it offered.
RELATED ARTICLES
About the author
About the author
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
