POWERED BY MOMENTUM MEDIA
Consumers losing confidence in banks: ISA
Questions have been raised around the ability of banks to put client's interest first in the wake of recent concerns around bank based financial advice.
In research of 1000 people conducted by UMR Research last month, and released by Industry Super Australia (ISA), 71 per cent agreed that reports of poor financial advice from the big banks indicated their boards were not working effectively.
Around two-thirds of survey respondents claimed that bank-owned super funds were overly focused on making a profit from customers' retirement savings.
ISA chief executive, David Whiteley said the surveyed captured the level of mistrust in banks that partly stemmed from recent negative reports around financial advice failures.
"Over the last decade, the big banks have had to pay millions of dollars to customers in refunds, compensation or settlements, and have been the subject of investigations and other enforcement action by the regulator and police," Whiteley said.
"I think the community at large doesn't have a high level of trust in the banks, particularly people over 30. If Australians formed a view that government proposals intentionally or unintentionally benefited the banks, at the expense of consumers, that could be of concern to them."
He said despite these consumer concerns banks were still "on a campaign to reduce consumer protections and gain market share" by seeking to remove consumer protection and by changing "the character and structure of their better performing competitors, industry super funds".
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
