Industry funds rail against Government 'kill switch'

Industry superannuation funds are accusing the Government of unprecedented legislative over-reach within its Your Future Your Super legislation particularly around powers to ban superannuation fund investment and expenditure decisions.

Both Industry Super Australia (ISA) and the Australian Institute of Superannuation Trustees have signalled they will be pushing for the legislation to be reviewed by a Senate Committee.

Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck said that while her organisation supported the intent of the legislation it stopped well short of addressing under-performance across the superannuation sector.

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What is more, she said that the legislation lacked important detail around the power of the Government to ban any super fund or investment or expenditure regardless of whether it was in members’ best interests.

“This is an extraordinary over-reach of power with no precedent in this country,” Scheerlinck said. “The change removes the certainty needed for long-term investing and risks significant impact on investment outcomes for members.”

For its part, the ISA described the Government’s proposed new powers as “regulatory kill switch” which was unnecessary and an ideological overreach.

“Reports today suggest extreme elements of the Coalition party room will try and use this power to ban fund ESG investment or vital investments in affordable housing. An added regulation making power is equally concerning, it appears it would allow the minister to dictate what is in members' best financial interest giving politicians unfettered control over workers' super.”

However, the ISA’s own approach calls for legislative changes which would force the closure of underperforming funds.

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Ha! As a financial planner subject to : years of legislative harassment (there's no other way of putting it), professional slander ("This only applies to the bad apples, not to you" doesn't cut it and is a weak excuse for pillorying an entire profession); punitive education requirement implementation; business model devastation with zero evidence-based justification and NO viable "disruptor" alternative on offer... I'd say "suck it up and get professional"; "stop being a dinosaur"; "this is in the member's best interest" et al.

I am so tired of the super industry "titans" - be it retail funds, bank funds, industry funds - pushing their own barrows. It is time that the member's sole interest was put front and center.

If a super fund doesn't want to comply with the legislation, they can always choose to not offer a MySuper product, and delineate their services to members in some special way. Like a new business model. No big deal. It should only take a year or so to change the complete business operation. No problems. Thousands of financial planners have had to do it. Now it's the turn of the bullies in the financial services playground.

No sympathy whatsoever.

Post of the year! I think you have summed up the thoughts of 99% of all financial advisers. It was only a matter of time before their 'holier than thou' attitude would come back to bite them, with fingers pointed at their misbehaviour. Have only just scratched the surface though.

I hate to side with the industry funds... and I'm not going to. Suck it up buttercup, and start doing something which adds to the value of member accounts.

My immediate thought was why they are so anti-"Your Future Your Super" legislation, because this will make sure the investments will be in the best interests of clients. Surely they are already doing this? Certainly they are all in this together.... only for the benefit of members, so this can't be a problem.

I think this is going to be a "Wake up and smell the cow manure" moment.

The Govt should force the closure of all Funds and make Super voluntary. Look at the campaign at the moment by ISA etc on the .5% hike in compulsory super. The advertising on tv is ramping up and members are paying for this war. Compulsory super is part of the Great Reset. . These funds have control over Your money. REST took half of my deceased son's super and DB or $213k and gave it away. Think this won't get worse in the next 20 yrs
You're a dreamer or an idiot if u think otherwise. Wake up Aussies. The Funds only care about the Unions they give millions of dollars of yr money to each year, the Labor party who brought this in and themselves CEO's on millions plus and Boards the same.Cushy job for life. You're being taken for a ride.

Gee Whiz Willie Wonkers!!! Here was me thinking Trustees have always had an obligation to act in Member's best interests. Things like offering NEW members Qantas Points for signing up. Sporting Club sponsorships. Corporate Boxes to entertain employers. Advice to Members, where every Member is charged a fee, whether or not a member receives any advice that particular year. All clearly in all Members best interests. Doesn't the Government understand these value added things we do to treat all Members fairly and equally? Gosh, as a Trustee struggling in these time, I'm struggling to think what else I can do to show support for my Members. Beyond buying MHRs and Senators lunches, to show that I am supporting worker's wages. I mean, the higher they are, the more there SG contributions are right? Of course, that's not bribery or exerting influence is it. We will be hitting the red and eating the steaks and prawns for our Members. Sigh.... it is hard being a Trustee.

Hell no... they only have a fiduciary duty, which means they can also decide to draw funds out of non-performing "about to be revalued downwards" investments before the rest of the members get to find out about it as well. :P

All the rest of the things you say are still "AOK" though. :P

Once upon a time not that long ago employers decided where most peoples super money went and for advisers decided for a few. Funds were investment managers and most people very unengaged in their retirement funding. Then the government decided everyone had a role to play in determining their personal retirement outcomes so Super Choice was legislated and funds were encouraged to assist people on their retirement journey - its your super. The retail and corporate funds saw this as a cost to business and decided to leave it up to individuals to make their own decisions. Industry funds decided that helping people have better individual retirement journeys was part of their proposition. And here we are today.

AIST a conflicted self serving self interested voice piece for the union super funds whose sole purpose and aim is to increase their own wealth by siphoning as much as they can from as many as they can in as many ways as they can. An increase in SG means more wealth to them and protecting their bullsh*t empire of filth and lies to suck the funds to thier pockets is their only focus currently.

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