The big Tasmanian multi-industry superannuation fund, Tasplan, has called on the Federal Government not to rush its superannuation reforms.
Reacting to the Federal Government announcements in the lead-up to last month’s Conference of Major Superannuation Funds in Hobart, Tasplan Super general manager, Neil Cassidy said that the Government’s suggestion that it would legislate for the removal of a cooling off period would put at risk a part of the $650 billion in funds under management.
He said that the change, if implemented, would remove an important safeguard in the system.
“Super is not like a telephone service, where a fast-talking salesman can convince a person to transfer to a new style of service provider over the phone,” Cassidy said. “Where balances are large, it can be far more important than buying a family home and deserving of at least as much consideration.”
He said that many Australians did not have a good understanding of their own superannuation much less the performance of financial markets and that was why the community expected there should be some safeguards in the system to protect people from making the wrong decision.
“A cooling off period prior to the processing of superannuation transfers gives Australians the time necessary to seek advice about information and recommendations provided by the nation’s burgeoning number of commission-based financial advisers,” Cassidy said.
