Responding to claims made by Australian Workers Union boss and AustralianSuper deputy chair Paul Howes in the Australian Financial Review – in which Mr Howes likened SMSFs to “mortgage-backed securities” in the US and claimed the sector was responsible for the housing boom – Senator Sinodinos told ifa there are likely ulterior motives at play.
“The real answer to Paul Howes is that people like him prefer the money to be tied up in the industry funds where people like [him] make decisions in the name of their members,” Mr Sinodinos said. “Well, we want a system where the members drive the change.”
The government’s proposal to have superannuation fund boards comply with independent governance requirements in line with ASX 200 companies will help weed out these links and conflicts of interest, the Assistant Treasurer said.
“We want people power in industry funds and other funds, we don’t want union power,” he said.
More broadly, the senator said the government – and Liberal Party – supported the SMSF sector’s “philosophy” of self-direction and personal responsibility, outlining the case against a compensation scheme for self-managed super investors.
“Our philosophical position is it’s a light-touch regulatory regime, and therefore people have responsibility for their financial decision-making and it’s not up to government to compensate them and potentially create a moral hazard, which encourages excessive risk taking,” he said.
A core aim of the upcoming Murray Inquiry will be to foster a “system of retirement incomes” that inspires stability and confidence, Mr Sinodinos said.
I’m a little confused as to who it is that you are blaming for causing the GFC…[quote name=”hochalot”]Sinodinos’ulterior ideology is anti union. He appears to view them as outlaws and evil. More helpful if he moved on and viewed member outcomes in terms of financial performance and social good. The SMSF sector exists for those who prefer independence. Sinodinos ought to remember who caused the GFC and answer the question why they have not been brought to account. What the govt should have done to prevent it.[/quote]
….and the ulterior ideology of Labor,Unions and the ISA has been to coral the savings of individuals not for individual outcomes or social good but as a political stalking horse and leverage. Sinodinos hardly needs to point out evil and lawlessness of Unions, its in the paper every day for all to read.
Some straight shooting common sense from the minister. Hard to understand why the union movement has any concern with SMSFs other promoting an alternate product. Your article should point out that Mr Howes is Deputy Chair of Australian Super Having waged a war against retail funds, now the focus is SMSFs because Australian Super is not big enough! As big as a bank, but a long way short on equivalent governance rules.
I find it quite amusing that the union funds want to talk about everyone else’s conflict of interests other than their own. Good to see some in power finally calling them on their hypocrisy.
hochalot…. surely you are not suggesting financial advisers caused the GFC and those that “prefer independence” were just caught up in it.
The ISN and Union shonks were establishing a power base in the face of dwindling Union membership. A power base consisting of Union and non-Union members savings to be used for Union political power. It heartens me that someone with some clout has called it how it is.
Sinodinos’ulterior ideology is anti union. He appears to view them as outlaws and evil. More helpful if he moved on and viewed member outcomes in terms of financial performance and social good. The SMSF sector exists for those who prefer independence. Sinodinos ought to remember who caused the GFC and answer the question why they have not been brought to account. What the govt should have done to prevent it.
This man keeps giving me confidence that common sense prevails.