FSC hits back at ISA enticement claims
The Financial Services Council (FSC) has labelled claims by Industry Super Australia (ISA) that banks could offer employers incentives for default fund selection are wrong, claiming any enticement would be a breach of the law.
The Superannuation Industry Supervision (SIS) Act prohibits any enticements in the form of discounts, rebates and write-offs, according to FSC CEO John Brogden, which makes the ISA’s fears unwarranted.
He said the legislation applies to both retail and industry super funds.
Brogden said the statements could disguise a fear of competition from industry funds.
“Superannuation funds that offer competitive products and provide good service to their members have nothing to fear from competition,” he said.
“The best outcome for consumers is for funds to be forced to compete for default superannuation contributions,” he added.
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