Super trustees want safe harbour
One of Australia’s largest industry superannuation funds have argued that super trustees should be allowed a statutory safe harbour, protecting them from the individual investment decisions of members.
In a submission to the Cooper Review into superannuation, UniSuper has argued that existing regulator arrangements are potentially problematic for super trustees.
“In recognition of the exposure of trustees to the unpredictability of member choices and switching patterns, UniSuper contends that Superannuation Industry (Supervision) Act (SIS Act) should provide a statutory safe harbour that protects trustees from claims arising from the investment decisions made by members,” the submission said.
It said that superannuation was increasingly a portal for managing wealth on a tax-effective basis and, in that regard, superannuation products were competing with other managed-fund products (many of which are also structured as trusts).
“Similarly, a member might select an investment option through their superannuation fund and select an identical investment strategy through a non-superannuation product (such as a platform and/or managed fund) and both products might even be offered by the same organisation,” the submission said.
It said that under the current legal regime, the member could potentially have a claim against the trustee of the superannuation product for allowing the member to choose the investment option, whereas the member would have no such claim in relation to the non-superannuation product.
“This is an asymmetry that discriminates against superannuation trustees by exposing them to unfair legal risks,” the Unisuper submission said.
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.
