Legislation closes the super corporate box

The Federal Government believes it has closed the door to the superannuation fund corporate hospitality box with the passage through the Senate of key legislation last week.

According to Treasurer, Josh Frydenberg the passage of the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill represented the effective implementation of a key recommendation of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

In doing so, Frydenberg specifically referenced the Royal Commission’s Recommendation 3.6 that trustees be prohibited from “treating” employers in return for “having the recipient nominate the fund as a default fund for having one or more employees of the recipient apply or agree to become members of the fund”.

The Treasurer said the legislation would also see directors of superannuation funds face criminal penalties for breach of their best interests duty and provide the Australian Prudential Regulation Authority (APRA) with more powers to deal with underperforming superannuation funds.

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It won’t stop them. They seem to be above the law.

Who would enforce this law, ASIC or Hedware?

Certainly not you. You seem to think that only the industry super funds are the ones doing corporate hospitality. I know the other side is good with corporate hospitality as I have been there.

Well, that seems to be proof your not an Adviser.

So your conflicted?

Didn't inhale.

Just passed it alone did we?

In the process they watered down the Opt In requirement of insurance for low balance funds of under 25s. Seems The trustees were happy to sell out the employers box to ensure they kept their revenue stream coming in from insurance commission (sorry profit share).

Another deal made by the product providers that impacts others and preserves their welfare. Industry funds would have told Bill opt in insurance will cost the fund millions, but corporate boxes will save them money. One outcome frees up money for donations. The other reduces donation money.

These senators cannot see what is going on. Providers are using government to reduce their costs and maintain / improve their profit.

The bill has gone back to the house of reps so send your local member an email.

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