Don't agree with 'You are Kidding' & think Devil's Advoc has got a better grip of the horns of this one.
If APRA were serious in applying a consistent approach then essentially all ISA funds exec's from the chairman to the Investment heads would need to be thrown under the bus for the "organisational structure, governance and conflicts management frameworks" and unresolved "conflicts of interest" issues.
One just has to look at AustralianSuper one of its largest flagships, not to mention the recent mass dismissal of 5 key exec's from REST to realise they have significant issues that neither ASIC nor APRA are in a rush to investigate. One would have to wonder whether they are purposely allowing the ISA enough breathing space to bury all those dead bodies deep enough, that when the supposedly impartial regulators finally get around to doing their superficial investigation, that they can publicly declare there is no evidence or bad smell.
The RC was far from unbiased and while I applaud all the uncovering of improper conduct by the banks, I think it is encouraging that at least some of these heads of institutions take a stance and push back as we do not need the economy pushed too far to the left or else we'll have 'the recession we didn't need to have', to purposely mis-paraphrase Keating.
If the RC had conducted the full mandate it was supposed to, unbiased across all relevant areas including ISA, to the same degree that it took the banks to task and we all then reset the entire financial services spectrum with a clean start across the board, I would be in favour of their outcomes.
It didn't. The RC was little more than a politicized exercise with a predetermined agenda to further empower and enrich union funds, reduce our numbers and the threat we & banks represent to their future wealth. Bear in mind ISA funds memberships will begin to fall off a cliff as baby boomers retire, therefore unions and labor are looking now to avoid any threats to their future cash cow.
Even if you don't believe APRA is implicit in the push to the left described above, you would have to recognise that as a bare minimum it is taking an easy prize by identifying an issue raised at the Royal Circus and wanting to be seen to be 'taking action'. One would have to wonder how many more of the conflict of interest issues have been ignored by the other institutions and ISA, and if they took the same action across all, what position would that leave us all in?
I'm sure if you are left leaning yourself, you'll try to discredit all the above with the age old 'conspiracy theory' cry, but as a former detective once said to me, if ever you are after answers, follow the money first.
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