A significant section of the superannuation industry would welcome a change to the regulatory structures to ensure greater management independence within superannuation banks owned by the major banks, according to a survey conducted by Super Review.
The survey, conducted during the recent Association of Superannuation Funds of Australia (ASFA) conference in Adelaide, revealed nearly three-quarters of respondents believed a regulatory change was needed following evidence delivered to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The survey also revealed a strong belief that bank staff should be precluded from ‘selling’ superannuation products under the label of “general advice”.
The survey revealed that 71.4 per cent of respondents agreed that, given the evidence heard during the Royal Commission, changes were warranted to the manner in which superannuation funds operated within banks’ vertically integrated structures.
On the allied question of whether bank staff should be permitted to “sell” superannuation to clients under the label of general advice, 85.7 per cent of respondents answered “no”.
The survey results have been released just days after the Royal Commission would up its hearings in Melbourne on Friday, with the Commissioner, Kenneth Hayne, scheduled to deliver his findings and recommendations in February.
The Financial Services Minister says the amendments to the SIS Act within the first QAR bill will “clarify the law to affirm the status quo”.
Superannuation funds have thrown their support behind the QAR reforms but want a “clear statement” that they will not be required to check all member SOAs.
In its latest report, the corporate regulator says the deduction of advice fees has led to instances of “inappropriate erosion of members’ balances”.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
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