Banks are super fee-gouging says ISA

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”.

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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.




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ISA should write and present the views on wet toilet paper. That is as much notice as the market cares about, If they are so concerned make transparency of the group insurance, and other management fees.

"had also referenced vertical integration and ..... group insurance, ....."
So ISA, that most vertically integrated, least transparent organisation of them all, has an issue with the lack of transparency and vertical integration from the banks? Group insurance issues? Because ISA aren't the worst when it comes to insurance either, are they Whiteley?
Whiteley seriously needs to jump off a bridge, test how good his group life insurance is

I often wonder if their Advisers are recommending their clients to retain/increase their own group insurance. It's likely this wouldn't be in the clients best interests.

I would imagine that Trauma cover wouldn't even rate a mention either

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