FPA disappointed over choice failure
The Financial Planning Association (FPA) has expressed disappointment at the rejection of the Choice of Fund Bill in the Senate on Wednesday.
FPA chief executive Ken Breakspear says the failure of the Bill to pass the Senate is a blow to competition in the superannuation arena.
Breakspear says the lack of competition will reduce the pressure on super funds to reduce fees.
He says the FPA will play an active role in assisting the Government and the Democrats resolve the issue.
Choice of fund legislation failed to pass through the Senate on Wednesday night after the Democrats opposed the bill, claiming that it discriminates against same sex couples.
“At the end of the day, in spite of many discussions, a great deal of consultation and a lot of talking, the Government was not prepared to accept our condition that such major change to our superannuation system would have to fix the problem of discrimination against same sex couples,” Democrat senator Lyn Allison told the Senate.
“That was a fundamentally important condition for the Democrats, and it was stated at the outset. The Democrats cannot, therefore, support this legislation.”
Opposition superannuation spokesman Nick Sherry voiced the Labor party’s views when he said: "[Choice of fund] is about providing greater opportunities for the banks. It is about wrecking existing corporate and industry funds...It is about increasing fees, charges and commissions paid to the people who distribute superannuation products. It is about lessening the protections that, currently, members of superannuation funds enjoy in Australia."
Assistant Treasurer Rod Kemp described the failure to pass the choice proposals as disappointing, and said the Labor party's opposition to the proposals was simply about protecting union interests in superannuation.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
