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ISA welcomes O’Dwyer, urges industry change

Industry Super Australia (ISA) has welcomed the reappointment to the cabinet of Kelly O’Dwyer, saying it looks forward to working with the minister on industry changes needed after “scandals in the for-profit sector”.

In a statement, ISA said it will work with Ms O’Dwyer – named this week as the Minister for Revenue and Financial Services – on major changes to superannuation and financial services proposed earlier this year. 

“In particular, the 2016 Budget reforms to make super more sustainable and equitable must remain a legislative priority in the next sitting of the new Parliament,” said ISA deputy chief executive, Robbie Campo.

“New safeguards to address conflicted remuneration in the financial services industry, stronger product disclosure requirements and higher professional standards for financial planners are also essential to ensure consumers’ best interests are being strengthened in the wake of life insurance and other scandals in the ‘for profit’ sector.”

ISA added that it looks forward to an evidence-based discussion regarding the Productivity Commission’s inquiry into the efficiency of the superannuation system and processes for default fund selection.

“A large number of Australians rely on high-performing default funds to ensure a comfortable and dignified retirement. However, the poorer performance of many choice products and many SMSFs should flag the need for more effective consumer protections for members leaving or outside default arrangements,” Ms Campo said.

“The best interests of members must remain firmly at the centre of any proposal to widen and strengthen the existing default safety net.”