Industry Super Australia (ISA) has urged the Government not to cave into bank-lobbying to dismantle the industry superannuation governance model.
ISA pointed to reports that suggested the Government was preparing a raft of bills that could dismantle the model, and give bank-owned super funds a “leave pass” on some of the new disclosure and transparency requirements.
ISA said the bill came despite ongoing revelations about poor governance, culture, and conduct within the banks and their wealth management arms.
ISA chief executive, David Whiteley, said: “Industry super funds are deliberately different and have been immune to the scandals that continue to cause significant consumer loss and hardship”.
"Member-first governance and culture is the reason industry super funds outperform bank-owned super funds,” he said.
Whiteley said the success of the trustee governance model was evident of the outperformance of industry super funds over bank funds.
"The government should focus on fixing unpaid super, addressing the gender gap and reducing multiple accounts,” he said.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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