SUPERANNUATION – AUSTRALIA – REGULATION

Overhaul to boost super by $3.8bn

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 10-Jan-19

The Productivity Commission’s final report on its review of the superannuation system will be released on 10 January. It doubles down on the recommendations of an interim report that was released in May. Amongst other things, the PC recommends sweeping changes to the default super regime, including allowing new employees to choose from a list of the 10 best-performing funds. The PC estimates that its recommendations would increase the nation’s retirement savings by about $3.8bn a year. The final report of the financial services royal commission is expected to adopt some of the PC’s recommendations.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION

Super loopholes cost retirees billions

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Original article by Anthony Klan, Olivia Caisley
The Australian – Page: 1 & 2 : 3-Dec-18

Professor Thomas Clarke says lobbyists from the financial sector have done a good job in persuading governments to go easy on the regulation of superannuation over recent decades. The University of Technology, Sydney academic says this has come at the expense of workers and retirees, who he claims are losing billions each year because of exemptions in various pieces of superannuation legislation. The Australian Institute of Superannuation Trustees, which funded Clarke’s research, states that both sides of politics have been guilty of watering down legislation.

CORPORATES
UNIVERSITY OF TECHNOLOGY, SYDNEY, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN LABOR PARTY, SUPERRATINGS PTY LTD

Super mergers could save $1.8bn

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Original article by Michael Roddan
The Australian – Page: 17 & 24 : 26-Nov-18

The Productivity Commission claims that $1.8 billion in savings could be gained each year if Australia’s 50 highest-cost superannuation funds were forced to merge with the 10 lowest-cost funds. The Commission’s research indicates that around eight per cent of all superannuation accounts are "trapped" in funds that have high fees and generally underperform, while there are 93 funds with less than $1 billion in assets. Its figures come as the banking royal commission prepares to take the Australian Prudential Regulation Authority to task over its tardy oversight of the superannuation sector.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Shorten to shake up bank super

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Original article by Simon Benson, Rosie Lewis
The Australian – Page: 1 & 4 : 12-Oct-18

Labor leader Bill Shorten has indicated that bank-owned superannuation funds could face tougher regulation under a Labor government. Noting the inherent of conflict of interests associated with profit-focused banks owning retail super funds, he said that one option could be a requirement that such funds appoint independent trustees. He also flagged the possibility of empowering the Australian Prudential Regulation Authority to sack trustees of super funds that consistently underperform.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, ONE NATION PARTY, CENTRE ALLIANCE

ASIC accuses NAB of $100m super rip-off

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Original article by Ben Butler, Michael Roddan
The Australian – Page: Online : 7-Sep-18

The Australian Securities & Investments Commission has launched legal action against National Australia Bank over the fee-for-no-service scandal. ASIC claimed in a suit filed with the Federal Court on 6 September that NAB had breached the law on 77 occasions, and that it had "ripped off" over 500,000 unwitting superannuation fund members to the tune of more than $100 million. ASIC claimed NAB’s actions had undermined confidence in the superannuation system, while NAB faces fines of up to $37.5 million.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FEDERAL CIRCUIT COURT OF AUSTRALIA

Industry funds demand banks and super split

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Original article by Michael Roddan
The Australian – Page: 17 & 27 : 21-Aug-18

Industry Super Australia chairman Peter Collins says the banking royal commission’s revelations regarding retail superannuation funds warrant the separation of super from banking. Collins says those who thought that industry super funds might fare badly under the commission’s scrutiny got it wrong. He says the commission has shown that the industry funds sector was right to run its controversial "fox and henhouse" advertising campaign, which claimed that the $600 billion pool of default savings would be at risk if the government allowed the banks to access it.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE, HOST-PLUS, LIBERAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE INVESTMENTS LIMITED, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIANSUPER PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

CBA’s 15,000 crimes waved on by APRA

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 18 & 23 : 15-Aug-18

The banking royal commission has been told that the Australian Prudential Regulation Authority did not pursue action against Colonial First State over its tardiness in transitioning customers to MySuper products. The Commonwealth Bank of Australia subsidiary had been required to shift clients to the low-fee accounts by the start of 2014. However, it did not do so for more than three years. CBA admitted to over 15,000 breaches of the Superannuation Industry Supervision Act, but rather than impose fines, APRA approved a plan to gradually transition CFS clients to MySuper accounts.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GROUP LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSSIE HOME LOANS LIMITED, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED

APRA urges caution on super reforms

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Original article by Andrew White
The Australian – Page: 17 & 18 : 6-Aug-18

The Australian Prudential Regulation Authority’s deputy chair Helen Rowell says superannuation funds that are excluded from the proposed list of the 10 best-performing funds may face problems such as liquidity issues and doubts about their sustainability over the medium to long-term. She adds that the Productivity Commission’s proposed changes to the default super regime would increase APRA’s workload, as it would have to work more closely with registrable superannuation entities that do not make the "best in show" list.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. FAIR WORK COMMISSION

Strip super from union awards

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 29-May-18

The Productivity Commission’s highly-anticipated report on the superannuation system has recommended major changes to the default fund regime. It proposes that an expert panel – rather than unions or employers – be given responsibility for selecting a list of 10 default super funds. The Commission says this would address problems such workers being locked into underperforming default funds and the creation of multiple accounts when people change jobs. The Commission has also made recommendations on issues such as the number of independent directors on super funds’ boards.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Minister lambasts CBA fee gouge

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Original article by Caitlin Fitzsimmons
The Age – Page: 8 : 24-May-18

Financial Services Minister Kelly O’Dwyer has criticised the Commonwealth Bank’s move to impose a "regulatory reform fee" on members of its superannuation and pension funds. Super fund members have been told that the fee is to cover the cost of unspecified but "highly technical and complex" regulatory reforms. O’Dwyer says there appears to be no justification for the fee, and argues that customers’ retirement savings should not be used to meet compliance requirements.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE, COLONIAL FIRST STATE GROUP LIMITED, COMMONWEALTH PRIVATE BANK, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY