POWERED BY MOMENTUM MEDIA
Industry funds refuse to fund planner complaints
Industry superannuation funds should not be required to cross-subsidise financial planners and others who appear before the newly-constituted Australian Financial Complaints Authority (AFCA), according to the Australian Institute of Superannuation Trustees (AIST).
On the same day that the chair of the AFCA, former Liberal minister, Helen Coonan confirmed that AFCA would be funded by an APRA-style levy, the AIST warned against cross-subsidies by stakeholders, including superannuation funds.
AIST chief executive, Eva Scheerlinck, said there was a moral and legal obligation on super funds to ensure that members’ savings were not used to fund the resolution of complaints in other areas of the finance sector.
“It would be unacceptable, inequitable and unfair if members’ retirement savings were used to fund the resolution of disputes unrelated to superannuation, such as complaints against banks and financial advisers,” Scheerlinck said.
AIST’s submission to AFCA also raised concerns about a lack of transparency in AFCA’s proposed funding models for three different stages covering transition, interim and long-term funding.
“We request that AFCA release detailed cost projections for each dispute resolution stream to enable super funds to better understand how members’ savings are going to be used and how much will be collected from each industry sector providing the funding,” Scheerlinck said.
Recommended for you
AMP’s chief economist has unveiled a wish list for the Australian government’s Economic Reform Roundtable.
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
The best interests duty and new class of adviser didn't make the cut for the pre-election DBFO draft bill; however, ASFA has used its submission to outline what it wants to see from the final package.
The peak body stressed that the proposed financial advice reforms should “pass as soon as possible” and has thrown its weight behind super funds providing a greater level of advice.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
