In a statement, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume said the government welcomed the announcement by APRA that it expected super funds to make release payments to members meeting the eligibility criteria for the scheme “as soon as practicable” after approval from the ATO.
“In the vast majority of cases this should be no longer than five business days,” Ms Hume said.
“I welcome this guidance from APRA. Given the importance of cash flow for many people at this critical time, the Morrison government expects super funds to be paying members their money as quickly as possible, and within five business days.
“We understand this is a very challenging time for all Australians. These measures will ensure that Australians impacted by the COVID-19 pandemic will receive this vital financial support as quickly as possible.
“This is an opportunity for the super funds to demonstrate their commitment to their members at the time they need it the most.”
APRA’s guidelines for super funds’ COVID-19 response, updated on Thursday, state that payments must be made by super entities within five business days if they have not identified any compliance red flags around the release.
Formal applications for the scheme will open on Monday, with over 600,000 fund members already having registered interest with the ATO.
So looking forward to reviewing this topic in 12 months time when industry funds are still operating and still getting better returns for their members.
Of course they will still be operating, but I don’t think the public or media will buy that bullshit any more. Comparing so-called ‘balanced funds’ which are loaded up with high-risk investments, some as high as 93%, to traditional balanced funds which contain 40% cash and fixed interest is not going to cut it anymore.
Still funding the Labor Party – still asking for members names to supply to their Union mates
As long as every member of an Industry Fund is aware, that they are indirectly funding the Labor Party as well as any anti-conservative political lobby group that the Union dominated / ex-Labor Party State Premier stacked Board – sees fit to support.. This occurs whether the member likes it or not.
The same party who created super. Lol. Most industry funds have board members and their salaries are then usually passed on to the Labour Party. All info publicly available on financial statements.
Any person on the planet who logs into a publication titled ‘Independent Financial Adviser’ and is surprised to see advisers rejoicing the prospect of industry funds going to the wall, needs their head checked. These funds chose to go down an evil path, one which involved a deliberate, vicious and relentless attack of IFA’s over the last two decades. Besides, these funds won’t ‘go to the wall’ as you suggest. They will simply suffer from investment losses commensurate with the risks they have taken. Over the long-term they will be fine. But the media, the public and the politicians will no longer be blind to the misleading nonsense these funds got away with for so long.
just need AMP vetting to get the plan approved now, should only take about 3 weeks!
Any person on the planet who takes joy at the prospect of a fund going to the wall needs their head checked. There will be casualties for retail funds as they are also invested in unlisted assets (Russell- 20%, Amp 12%, MLC 16%). We should focus on what’s important, everyday Australians getting the advice they need and not this childish behaviour from dinosaur/bitter financial advisers.
20%, 12%, 16% in illiquid funds is vastly different from 48%/50% in Hostplus as an example, plus those funds have an additional amount of 40%+ in equities….vastly different and by the way, mature advisers and long term advisers built this profession and have helped many clients, show some respect and stop being derogatory. And why are Advisers being told how much to charge clients who need help?? Imagine telling a Lawyer they can only charge $300 to help a distraught person get access to an insurance claim? – disgraceful
Correct, not all industry funds have the same exposure as hostplus.
Think about the cashflow position of retail funds… mature member base, drawing down their funds via pension payments, losing employer Corp plans left, right and centre and sg contributions drying up. Retail funds are not immune in this extraordinary event so leave the politics out of it and focus on client needs. There will be no winners out of this. Any comments from advisers about their happiness at someone else’s demise is childish.
You have missed the point. Many here need to celebrate the potential demise of industry funds (which won’t happen anyway) because they have been responsible for making it harder for advisers aligned to their own retail funds to make money.
Well Realityking…the Industry Funds have kicked the living shit out of retail funds and advisers for the last 15 years with blatantly inaccurate advertising, attacks on adviser’s character and professionalism, attacks on adviser’s remuneration and spending members monies like drunken sailors on marketing, sporting club sponsorship and massive donations to trade union comrades.
So, whilst advisers do not wish to see individual members of Industry Funds suffer through no fault of their own, it is now time the true structure of the Industry Funds is unveiled and it is entirely appropriate they suffer as a result.
You cant keep punching away and not expect that one day the opponent is not going to come out of their corner and deliver what is needed.
This is not about dinosaurs, this is about a fair and level playing field, the cessation of manifestly false advertising and the cessation of Intra Fund advice being scoped out of compliance requirements and the charging of every single fund member for advice they may never receive.
So, Realityking…….take this advice and stop trying to defend the defenceless.
1. How big are Bonuses for retail CEO’s?
2. Retail funds also sponsor events & spend big on marketing- this is not unique to industry funds.
3. Each structure of fund has its strengths and weaknesses- SMSFs, retail and industry funds- thankfully it keeps the market competitive
Overall point- think as an individual human what the impacts on the member of any fund would go through should any fund go to the wall. It should never be a happy or joyous moment at all. The dust is yet to settle and the strongest funds will pull through and other funds will be forced to merge. Financial planning is a profession, let’s all act professionally and focus on what matters- the client.
Agree fully Realityking. It is so sad that many advisers here want industry funds to crash and burn just because they have made it more difficult for advisers to charge high fees.
You need some far-king-reality mate. How many times have they attacked Advisers, spruiked their investments, lacked transparency, dodgy sponsorships, funds funnelled to unions, and now they want a loan from the RBA. Turn it up!
the reality is, reality king… industry funds, on the main, have outperformed conflicted retail funds over all time horizons (except maybe during the early stages of a market recovery). Alts or unlisteds present legitimate investment opportunities, its just that the retail history of advice means that there are deep seeded beliefs from many advisers… typically the ‘dinosaurs’. If advisers legitimately work in the best interests of their clients, they would HAVE to look at a good industry fund option.
Most don’t even know how they work. They are blinded by the Scott Pape effect.
Liquidity trumps everything Einstein. Industry Funds have been pushing the lie that cheaper fees = superior performance. Time will tell.
I hope this smashes the SHIT out of industry super funds!!!
Default “Balanced Option” of +85% Growth and the RC did nothing about it……… F’n buggers and the old bastard Hayne – USELESS
Russell super fund (retail fund) balanced option is 70% growth assets. So what? It’s a label, you can change the profile. Futile argument. Given the language you are using, it lacks professionalism.
Makes sense since it should only take 5 days to sell a toll road or similar infrastructure at today’s fire-sale prices…
Imagine how worried AMP are now. The only thing they can turn around in 5 days are the bonuses to their execs.
now we will see the true colours
Count down to fund lock-up commences (looking at you, Hostplus!)
Volatile equities and illiquid assets not being revalued downwards properly, all while there are mass redemptions and switches to cash…….interesting times to be in an industry fund. Luckily the boards of these funds are full of qualified professionals that can add value to the process.
qualified professionals…..yeah…. Like the guy whose only listed qualifications were as a qualified electrician and a Cert III in Union Organising….
bye bye industry funds (image of a nuclear bomb going off). Your misleading ways finally will lead to your downfall!
Compare the pair !