The Federal Government will investigate claims by Industry Super Australia (ISA) that banks have been guilty of using direct channels, including tellers, to inappropriately switch superannuation fund members.
The Minister for Revenue and Financial Services, Kelly O’Dwyer, said the Government would have a look at the evidence which was being put forward by ISA, but cautioned that it was likely that no legislative breaches had occurred.
“We’ll obviously have a look at the evidence that they [ISA] are bringing forward in relation to this particular issue but my understanding is we’re not talking about commissions here and it’s entirely in keeping with the financial advice legislation which Labor in fact brought in during their time in government,” the minister said on national radio.
O’Dwyer suggested that the ISA should raise its concerns in the context of the current Productivity Commission (PC) inquiry into the Competitiveness and Efficiency of the superannuation regime.
“… it does concern me to think that we need to have a superannuation system, more broadly, that people can have confidence in and we do need to have a superannuation system that has competition that is efficient, but also that people can have confidence in,” she said.
“So we are conducting a Productivity Commission Review at the moment that is looking at these elements and I’m sure they’ll present information to that particular review and we will very seriously consider it.”
