The industry superannuation funds have ramped up their campaign against the major banks, accusing them of fee gouging to the tune of $9 billion last year.
Industry Super Australia (ISA) has drawn on research commissioned from Rainmaker to make its claims together with the accusation that notwithstanding the high fees, bank-owned super funds delivered two per cent less than industry fund over the past 10 years.
Commenting on the research, ISA chief executive, David Whiteley said super could not be allowed to become a “honey pot for Australia’s scandal-prone banks”.
Pointing to the fact the Rainmaker research had also referenced vertical integration and the generation of fees through complex arrangements such as platforms, funds management, group insurance, asset consultancy and financial advice, Whiteley claimed it was time for the major banks to be compelled to be more transparent.
"It’s time the major banks clearly disclose the profits they generate from compulsory super to their customers, shareholders and the general public,” he said. “The government and regulator need to find out if the bank-owned super funds are eroding workers’ super savings by generating profits for the parent bank.”
Whiteley said that the banks and their super funds were running a major lobbying campaign to change super rules to increase their market share.
“The banks are putting pressure on federal politicians to dismantle the model of not-for-profit superannuation funds and redesign the super system to suit their profit-making business models,” he said.