SUPERANNUATION – AUSTRALIA – REGULATION

Third of super funds ‘vulnerable’

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Original article by Clancy Yeates
The Australian Financial Review – Page: 6 : 19-Mar-15

The Australian Prudential Regulation Authority (APRA) has found evidence of insufficient awareness of conflicts of interest among superannuation funds. A third of the 40 funds reviewed by APRA were found to have policies on conflicts of interest that were judged to be "weak" or "vulnerable". APRA will send a letter to super funds about the need for more vigilance in this area

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CONFERENCE OF MAJOR SUPERANNUATION FUNDS (CMSF) PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Industry funds hit out over default review

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 5-Feb-15

It is estimated that around $A9bn is invested in default superannuation funds every year, while 80 per cent of employees fail to choose their own super fund. A report produced by Industry Super Australia rejects a proposal by the banking sector to remove responsibility for determining the list of default funds from the Fair Work Commission. It argues that the existing system is effective and should not be changed

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CHANT WEST FINANCIAL SERVICES PTY LTD, FINANCIAL SERVICES COUNCIL, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Retail super has only 5pc of default funds

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 21-Jan-15

Data from Chant West indicates that industry and retail superannuation funds achieved a return of 8.6 per cent in 2014. However, industry funds dominate the list of default super funds in the modern industrial awards system. AustralianSuper is listed in 71 of the 122 awards, while SunSuper and Care Super are listed in 56 and 52 respectively. In contrast, AMP is included in just 15 awards. Financial Services Council CEO Sally Loane has called for Federal Government action to enhance competition in the sector

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, SUNSUPER PTY LTD, CARE SUPER PTY LTD, AMP LIMITED – ASX AMP, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MERCER INVESTMENTS PTY LTD, PERPETUAL LIMITED – ASX PPT, AON AUSTRALIA PTY LTD, THE TRUST COMPANY LIMITED, EQUITY TRUSTEES LIMITED – ASX EQT, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, COLONIAL FIRST STATE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN MANUFACTURING WORKERS’ UNION, THE AUSTRALIAN INDUSTRY GROUP, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

Banks slow on MySuper switch

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Original article by Andrew White
The Australian – Page: 21 : 11-Nov-14

A new Rainmaker Information study for Industry Super Australia (ISA) shows that retail superannuation funds owned by the major banks have been tardy in moving customers into new low-fee default products. Under the MySuper regulations the switch must occur by mid-2017, but the retail funds have been only half as quick to comply as their rival industry super funds. ISA CEO David Whitely notes this is generating additional fee income for the banks. The submission by his body to the Australian Government’s financial system review also argues that banks should be banned from bundling banking and super products

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, FINANCIAL SERVICES COUNCIL, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. FAIR WORK COMMISSION

Seniors call for independent directors after breach

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Original article by Joanna Mather
The Australian Financial Review – Page: 19 : 13-Oct-14

The Royal Commission into Trade Union Governance & Corruption has been told by Cbus member co-ordinator Lisa Zanatta that she leaked account holders’ details to the Construction, Forestry, Mining & Energy Union. Like most other industry superannuation funds, Cbus has a board composed equally of employer association and trade union representatives. This arrangement has now been criticised by National Seniors CEO Michael O’Neill, who argues all super funds should have independent directors

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, ACTU

Stricter super rules ‘inevitable’

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 18-Aug-14

Ernst & Young’s Graeme McKenzie forecasts that at some point the Australian Prudential Regulatory Authority will subject the nation’s $A1.8bn superannuation industry to greater supervision. He doubts that the regulatory regime will be tightened in the near-term, as APRA released new standards in 2013, but he argues that the amount of money flowing into the sector will necessitate stricter regulation in the future

CORPORATES
ERNST AND YOUNG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, TOWERS WATSON

Whisky investment not a bad drop

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Original article by Simon Evans, Nassim Khadem
The Australian Financial Review – Page: 3 : 14-Aug-14

Australian investors have turned their attention to rare aged whisky, which they believe can be a worthwhile addition to their portfolios. Demand for this type of asset is strong, with investors willing to pay up to $A30,000 a bottle. Malt Whisky Society of Australia chairman Craig Daniels says speculators have entered the market. CPA Australia policy adviser Michael Davison warns about risks associated with investing in whisky by self-managed superannuation funds

CORPORATES
MALT WHISKY SOCIETY OF AUSTRALIA INCORPORATED, CPA AUSTRALIA, DAN MURPHY’S, WOOLWORTHS LIMITED – ASX WOW, DELOITTE TOUCHE TOHMATSU LIMITED, MARIN ACCOUNTANTS PTY LTD