Fines proposed for recalcitrant managers

A little known financial services group has started a petition calling for fund managers to be hit with cash penalties for failing to release clients’ superannuation within a reasonable time frame.

2020 Directinvest, a boutique online financial services portal, is claiming some managers are deliberately delaying transferring clients’ super money when they opt to change funds, making a mockery of the Federal government’s new choice of fund regime.

The petition is being distributed via email.

Addressed to Prime Minister John Howard, Treasurer Peter Costello and other Government and opposition ministers, it calls for the introduction of new legislation that standardises super choice transfer forms, and imposes penalties on fund managers that fail to withdraw funds in a specified time period.

“People are forced to wait for extended time periods when transferring their superannuation,” the petition claims.

“This can result in significant losses for investors.”

The petition has so far received over 100 signatures, but 2020 Directinvest managing director Michael Lannon said the hope was that thousands of people would register their disapproval.

He said 15 working days was ample time for managers to release funds once investors had made the decision to change super schemes.

“We are frustrated by the fact that each company has its own form, and that there is no standardisation in the industry,” Lannon said.

“It is designed to make it difficult for the consumers. I believe it is deliberate because companies have no impetus to transfer funds.

“We hope that we can get thousands of signatures and present them to the Government.”