Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Govt signals ejection of FWC from default funds

compliance/financial-planning/Frydenberg/

10 August 2015
| By Mike |
image
image image
expand image

The Federal Government has sent its strongest signal yet that it intends removing the industrial relations judiciary from process of selecting default funds.

The Assistant Treasurer, Josh Frydenberg made the Government's position clear on the final day of last week's Financial Services Council annual conference when he said that presence of the Fair Work Commission in the selection as "poorly conceived" and canvassed an alternative arrangement.

In doing so, he signalled that the Government would be looking to limit the degree to which unions could flex their industrial muscle on superannuation fund selection issues.

"In considering what, if anything should be put in its place, the Government will first and foremost seek to make sure that all MySuper products are of the highest quality — not just those which are offered under Awards," he said.

"We will also ensure that the wider regulatory framework is robust and appropriate to support moving to an open and competitive market," Frydenberg said.

"This will include carefully examining whether existing protections against funds or related parties offering inducements or inappropriately influencing an employer's choice of fund through the threat of industrial disputation are sufficient."

The minister said that, ultimately, his objective would be to put in place a framework that would generate the strongest possible competitive forces for the benefit of every superannuation fund member.

"Given the significance of reform in this area, I will continue to consult with a wide range of stakeholders, APRA and other government agencies to ensure this outcome is achieved," he said.

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 day 23 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 5 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

4 weeks ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

4 days 17 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND