‘For profit’ funds deserve to remain in superannuation
Association of Superannuation Funds of Australia chief executive, Dr Martin Fahey has urged a continuing pluralist approach to the delivery of superannuation in Australia involving both retail and industry funds.
Addressing the ASFA conference in Adelaide, Fahey said the industry should be wary of those who were arguing for the adoption of a single model for the superannuation industry to the exclusion of for-profit funds.
“There will be those who want a simple approach a single default run by the Future Fund,” he said.
Fahey said that similarly, there were those who would argue that there had to be a single governance model and that also had to be rejected.
“We have to reject those concepts,” he said. “There has to be a place for for-profit funds.”
“Those who engage in arguments for a single solution imperil the system,” Fahey said.
The ASFA chief executive also warned that the industry needed to embrace its responsibilities with respect to aged care and health care.
“We cannot kick aged care and health care down the road to be the responsibility of another generation,” he said.
Recommended for you
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
