The Financial Services Council (FSC) and Industry Super Network (ISN) have agreed to bury the hatchet and work together to elevate superannuation from the realm of politics by announcing their own five-year freeze on advocating or supporting regulatory change.
The joint position was announced at the FSC conference today and follows yesterday’s announcement that the Federal Government would enact a five-year freeze on changes to superannuation tax policy if re-elected.
FSC chief executive John Brogden the superannuation industry had matured to the point where it required a united voice and the two groups would work together on key issues which impacted funds members in retail and industry superannuation funds.
“Because we have allowed ourselves to be divided, the significance of the industry and our prominence in the minds of government and consumers has been diminished. It is critical that we put our differences of the past aside and focus on building Australia’s next major export industry,” Brogden said.
ISN chief executive David Whiteley said a five year freeze by the super industry on advocating or supporting regulatory change would deliver certainty around tax and regulation for superannuation fund members
“ISN and FSC should lead the elevation of superannuation out of the political discourse and ensure policy making is considered, sector neutral and even handed,” Whiteley said.
“A clear message from our industry to the Australian public and policy makers that we have the future in our sights, and not the past, would be our lasting contribution to creating stability and certainty.”
A statement on the ISN website said the five year freeze would “deliver to members certainty in the tax and regulatory settings, leaving only market volatility as the principle cause of uncertainty.”
The statement also said that after much public debate and change a period of “stability and consolidation could yield considerable benefits for fund members and the industry.
“We have an opportunity to set aside what divides us, and compete on product innovation and most importantly long term net returns, rather than regulatory arbitrage.”
“From here on, the first instinct of the FSC and ISN should be to pick up the phone not fire off a press release.”
