There could be as few as 25 or 30 major superannuation funds left in Australia in the decade following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
That is the assessment of former Labor Assistant Treasurer, Nick Sherry who used a panel discussion at the Association of Superannuation Funds of Australia national conference in Adelaide to suggest that the Royal Commission would hasten consolidation in the industry.
While suggesting that retail superannuation would face the most challenges flowing from the Royal Commission, Sherry acknowledged that the 25 to 30 remaining funds would be comprised of retail, public sector and industry funds.
He said that while industry funds might confront fewer challenges from the Royal Commission findings, those that failed to deliver investment performance would face pressure to merge and consolidate.
Australian Prudential Regulation Authority (APRA) deputy chair, Helen Rowell said the superannuation industry was already seeing significant shifts, not least as a result of the major banks choosing to exit the wealth management sector.
She said that when this was factored together with financial services technology she believed the industry would end up looking very different.
Comments
This approach and what is now happening is showing how they just want to operate above the law. Everybody needs to be the same. Since the new socialist approach being adopted, and getting tougher to deny but if you do argue you will be just shot down, discredited, and everything else thrown at you rather than having a voice. Funded via business and the worker of Australia.
Anyone that wants to get ahead, or seeks better than the average advice is a target. Some of the basic to consider:
A trustee/member of an SMSF has a much better idea of the underlying investments that they hold in an SMSF including an idea of the cost, the type, the market value. Also has a good idea on when contributions and made and receive plus has a good idea of the earnings and expenses of the fund. The member/trustee and advisor has helped with educated literacy and the best interest of clients.
Go to other funds as mentioned - I would doubt that members could answer the questions - name the top 6 investments that you hold in your superannuation and I dont mean name a balanced fund as that is an investment structure - Could they name the underlying managers and style of investment, indicate the amount of contributions, income, expenses of your superannuation. If they cannot answer whom has the responsibility to educate and advise? Is that in the members best interest if they have no idea on the investment, contributions, earnings, income, expenses? The items mentioned makeup a significant portion of a super balance of a member.
With just 5 or 6 funds having the majority of assets, it will be easy now for any political party to just go and tell the managers - we need $1billion for a road - no problem, we need you to put some money to invest in NBN - no problem, need $500m to bail out banks in case of a crisis - no problem, we need to money to pork barrel and election promise - no problem.
Superannuation now becoming the people's non-bank investor and lending machine. The self-funded retiree model take care of your future has started to become a secondary thought.
In actuality I am sure the 'non-bank' super particularly the ISA would not prefer consolidation per se, but simply that there is only one superfund allowed in Australia that of course they gouge - oops sorry, I meant control.
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