The Financial Services Council (FSC) has shown itself as one of the few industry bodies to endorse the Productivity Commission’s final report on superannuation since its public release this morning, as it welcomed its changes to default super selection processes.
As industry fund bodies express their disappointment with final report, FSC chief executive, Sally Loane, praised the Commission’s changes to default superannuation fund selection to see employers and unions removed from the process.
“Taking default superannuation out of the industrial relations system and putting choice into the hands of consumers should be the cornerstone of a modern superannuation system,” Loane said.
The FSC also welcomed the Commission’s call for a binding and enforceable code for insurance in super, noting that its own superannuation trustee members would be bound by its Life Insurance Code of Practice from 30 June, 2021.
Loane expressed concern however, that the Commission’s determination to stand by its recommendation to have just 10 default super options could “create a monolithic concentration of funds, stifle competition and create huge barriers for innovate new products”.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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