ASIC urged to amend class order to include age pension
Two key organisations have taken issue with an Australian Securities and Investments Commission (ASIC) decision not to grant superannuation funds class order relief if they include age pension calculations when providing superannuation forecasts.
Both the Association of Superannuation Funds of Australia (ASFA) and the Institute of Actuaries have written to ASIC arguing strongly that the age pension can and should be included in superannuation forecasts.
In a letter to ASIC signed by ASFA chief executive Pauline Vamos and Actuaries Institute chief executive Melinda Howes, the two organisations insist that the age pension will be an important part of superannuation fund members' post retirement income.
"For these members, any consideration of the adequacy or otherwise of their income in retirement without having regard to the age pension is meaningless," the letter said.
It said that, accordingly, ASIC should carefully reconsider the issue and amend the class order to take account of the age pension.
The letter said that it should be up to superannuation fund trustees to decide whether the age pension was taken into account in calculations, but it was likely to be important for a majority of superannuation fund members.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.