New ISA adverts to push against bank default fund moves

Industry Super Australia (ISA) will fire another salvo in its bid to fend off default fund competitors launching a new television advertising campaign urging employers, and members to examine which super fund is their default fund.

ISA said the advertising campaign, titled ‘Banks aren't super', was in response to a lobbying campaign by major banks to reshape superannuation regulations to suit their business model claiming the banks "want to change the rules on how people join super funds to be allowed to ‘bundle up' business banking services and employees super arrangements".

ISA said that around eight in 10 working people do not choose a fund themselves and go with the default fund their employer has in place and that banks have already started to make moves to approach businesses about moving to bank offered default fund superannuation products.

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The peak group said a survey conducted in late 2014 by UMR Strategic Research found that around a quarter of 550 small and medium business surveyed had been approached by a bank during 2014 about moving to the bank's own retail super fund, with half of that group stating their bank had offered them benefits to change their workplace default fund.

"The banks seem to stop at nothing to get their hands on Australian's super savings", said ISA, chief executive, David Whiteley.

"The retail and bank-owned super sector has failed to deliver competitive investment returns and are seeking to create an unlevel playing field that suits their business model potentially at the expense of Australians' super savings."

"Most employers will do the right thing by having a fund in place that is run to benefit employees, has low fees and a history of strong investment performance."

"And we know that employees expect employers to be looking out for them when it comes to super, and not for the banks. After all, employer's choice can make a world of difference to the life their staff will have in retirement."




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Comments

Comments

Odd comments from Mr Whiteley. I've read where one Bank's product, namely ANZ Smart Choice has lower fees & even better returns than most industry super funds. It has even won several awards. As a champion of low fee superannuation with no adviser necessary, surely Mr Whiteley can see that a product like this must fit with member's best interest?

The banks will stop at nothing to get their hands on peoples super...neither will the ISA!! They are both just as bad as each other, hungry for FUM that's all. People can see this, they aren't stupid. The thing is a lot of people don't hate the banks like Mr Whiteley assumes, .. in fact a lot of people will probably be turned off the ISA as people also don't like those that belittle others to further their own agendas. Ill sit back on the sidelines and watch this play out...should be fun ....as the banks have deeper pockets than the ISA so lets see what they come back with. Spot on Old Fella...a quick search will show super ratings shows the average fee for anz smart super on 50K is $300 whilst comparable industry funds are $501 per annum. The top two cheapest funds are actually ANZ and Bendigo bank so put that in your pipe and smoke it ISA!

Has anyone been following the trade union Royal Commission inquiry? Just wondering.
Let's just say that we need to get more advice to more people so they know where they are invested and what they are investing in. Transparency is a wonderful thing.

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