Commentators in the superannuation industry have expressed frustration with the rotation of financial services ministers in recent years but are divided on the creation of a non-partisan consumer advocate to further the interest of consumers.
Speaking at an Australian Institute of Superannuation Trustee panel lunch in Melbourne, managing director of SuperRatings, Jeff Bresnahan said the industry constantly had to convince new ministers of the need for superannuation reform.
“We had Nick Sherry, then we had Bowen, and Bowen finally understood that commissions sitting inside compulsory superannuation was just disgraceful, and it took a long time but we finally educated all the industries and the Minister [for Financial Services and Superannuation]. Now we get Bill Shorten, so how long is it going to take to convince Bill Shorten that he has to go with this legislation and push it hard?” he asked.
There needs to be a consumer association that pushes the position of consumers on reform, and there isn’t one at the moment, Bresnahan said.
There are too many vested interests in the industry, which can derail the whole process, he said.
However, Cath Bowtell, trustee director of AustralianSuper and a Labor candidate for the seat of Melbourne in the recent election, said the trade unions already existed as a consumer advocate for superannuation.
“The unions nominate trustees to funds, the unions participate in all the policy reviews, and the ACTU has been particularly vocal inside and outside government in opposing the advisory structure at the moment,” she said.
Garry Weaven, chairman of Industry Funds Management, said the not for profit superannuation sector was already pushing the interests of consumers to a “fairly big degree”.
“The hallmark of the industry fund’s campaign has been that they focus entirely on net benefit to members … so the not for profit industry to date has done a really good job at being the consumer advocate in that [area]. Now if they fail to do that in the future, then I would agree with Jeff [Bresnahan],” he said.
Bresnahan responded by saying that the work of the not for profit sector on behalf of consumers was sensational, but it was being “blocked” by other parts of the industry”.
