FWC halts default fund selection

funds-management/mysuper/government-and-regulation/default-funds/federal-court/FSC/government/financial-services-council/australian-prudential-regulation-authority/

11 June 2014
| By Staff |
image
image image
expand image

The Fair Work Commission (FWC) has formally halted its selection of MySuper funds as default funds under modern awards in the wake of last week's full Federal Court decision declaring the make-up of its expert superannuation panel to be invalid.

The president of the FWC, Justice Iain Ross formally declared the default fund selection process to be on hold in a statement issued late yesterday in which he acknowledged that the because of the full Federal Court decision "the expert panel as purportedly reconstituted will not deal further with the matter".

The full Federal Court ruled on the matter following a challenge mounted by the Financial Services Council (FSC).

The FWC president's statement makes clear that the future of the current default fund selection process now resides in the hands of the Minister for Employment, Senator Eric Abetz, who has responsibility for appointing replacement member of the expert panel.

Given that the Government does not believe the current processes around the selection of default funds is appropriate, the minister has it within his power to delay making new appointments until the Government has had time to implement its only policy process.

The Government has signalled that it believes all MySuper funds approved by the Australian Prudential Regulation Authority (APRA) should be eligible for selection as default funds under modern awards.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

3 weeks 6 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 3 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3