Productivity Commission just added more bureaucracy - lawyer

mysuper/APRA/australian-prudential-regulation-authority/default-funds/superannuation-fund/government/

22 October 2012
| By Staff |
image
image
expand image

The Productivity Commission's recommendations around default funds under modern awards have added yet another layer of bureaucracy to an industry already struggling with multiple agendas and a crippling reform agenda, according to a partner with law firm Holding Redlich, Jenny Wilcocks.

Wilcocks pointed to the level of work being undertaken by funds to comply with the Government's Stronger Super changes.

She said if the Productivity Commission's recommendations were accepted these funds faced a secondary regulatory hurdle if they wished to retain their default fund status within a modern award.

She said that, effectively, funds seeking to retain default fund status would be forced to undergo a second investigation largely applying the same criteria already fully investigated by the Australian Prudential Regulation Authority (APRA), but under a different regulator applying different regulation.

Wilcocks said it was possible a fund could pass muster with APRA with respect to MySuper but fail with respect to the Default Superannuation Panel (DSP) within Fair Work Australia.

She said that even if a fund succeeded in its application by being selected as a default fund, it could still be disadvantaged if the DSP chose to identify those funds it considered to be best.

"Funds applying for a MySuper authorisation will incur considerable expense in obtaining APRA's authorisation," Wilcocks said.

"That authorisation will be of little use to a superannuation fund that loses its status as a default fund in 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?...

2 months 3 weeks ago

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

3 months ago

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

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

3 weeks ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND