The Superannuation Consumers’ Centre (SCC) has welcomed a funding injection stemming from regulatory action, after ANZ and the Commonwealth Bank agreed to each pay $1.25 million to the group as part of an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC).
The funding would see the Centre, which sought to advance and protect the interests of low and middle-income super members, become fully operational for the first time.
SCC chair, Rod Stowe, said that it showed the benefits of EUs for consumers.
“It is fitting that this funding has become available through regulatory action on mis-selling of superannuation products,” he said.
“This is an excellent example of the way enforceable undertakings can improve consumer outcomes. ASIC has ensured that the banks change their behaviour and consumers win through funding for a specialist organisation that will advocate for industry reforms to stop this kind of behaviour in the future.”
The EU followed a finding that the banks mis-sold superannuation products and would also see the two firms change how they sold super products.
An Australian superannuation delegation will visit the UK this month to explore investment opportunities and support local economic growth, job creation, and long-term investment.
An ASIC review has identified superannuation trustees are demonstrating a “lack of urgency” around improving their retirement communication and still taking a one-size-fits-all approach.
Superannuation funds have welcomed the boost that Treasury’s improvement on the Low-Income Superannuation Tax Offset will have for women and younger members.
The proposed changes to the Low-Income Superannuation Tax Offset (LISTO) has been applauded by the superannuation sector.