Industry funds eschew taint of bank scandals

Not-for-profit superannuation funds need to be careful to ensure they are not tainted by the negative publicity and consumer perceptions surrounding the banks and their financial offerings, according to Australian Institute of Superannuation Funds (AIST) acting chief executive, Eva Scheerlinck.

Opening the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, Scheerlinck points to the scandals which had surrounded the major banks and the manner in which this had created a point of significant difference for not-for-profit funds.

She claimed the conduct of the banks had led to a loss of confidence in the financial services sector and in doing so pointed to recent Australian Securities and Investment Commission (ASIC) action with respect to the National Australia Bank (NAB) superannuation business and against Westpac with respect to the BT Superannuation Trust.

"There have been scandals across the industry and we need to be careful they don't taint the whole industry," Scheerlinck said.

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She said this was why it was important to point to the different approach of the "profit for members" sector and the differences which exist between funds which look to their members first and those whose first priority is driving returns to shareholders.