FSC refutes ISA incentive claims
The Financial Services Council (FSC) has hit back at Industry Super Australia's (ISA's) claims that banks could offer employers incentives for default fund selection, saying such action would be explicitly against the law.
The Superannuation Industry Supervision (SIS) Act prohibits any enticements in the form of discounts, rebates and write-offs, according to FSC CEO John Brogden, which makes the ISA's fears unwarranted.
He said the legislation applies to both retail and industry super funds.
Brogden said the statements could disguise a fear of competition from industry funds.
"Superannuation funds that offer competitive products and provide good service to their members have nothing to fear from competition," he said.
"The best outcome for consumers is for funds to be forced to compete for default superannuation contributions," he added.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.