IFSA offers award super alternatives
The Investment and Financial Services Association (IFSA), already upset over the Australian Industrial Relations Commission’s approach to award sanctioned superannuation funds, has taken its concerns to a key Senate committee.
IFSA has made a submission to the Senate Education, Employment and Workplace Relations Committee inquiry into the Fair Work Bill 2008, arguing that mandating a default fund in awards results in a range of negative public policy outcomes, including inconsistency with Australia’s long-term micro-economic reform agenda, the imposition of higher fees on superannuation fund members and a lack of flexibility.
The IFSA submission argues that the Senate committee should recommend amendments to the Fair Work Bill to ensure the default superannuation market in Australia is competitive.
It has suggested that as an alternative to the mandating of particular default funds, there should be no default fund nominated within awards or, where such a fund is nominated, employees or employers nominate an alternative.
The submission argues that modern awards should also ensure any funds nominated as default funds have to meet consistent criteria which are generic in nature and apply across all industries.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
