In an interview with Fairfax, Mr Frydenberg said he intends to introduce “genuine competition” into the superannuation market, including on the controversial issue of default super funds.
“I don’t have a lot of faith in the current system. It leaves retail funds and small industry funds at a disadvantage. I am determined to act on that,” Mr Frydenberg told the Australian Financial Review.
The assistant treasurer also expressed his commitment to the Coalition’s longstanding policy desire to see more independent directors placed on super fund governance boards.
Reflecting on the comments, the SMSF Owners’ Alliance (SMSFOA) issued a statement endorsing the increased focus on fund governance.
“The supervision of APRA-regulated funds should be as least as stringent as the governance standards required of banks and other large corporations,” the statement said.
“In particular, a majority of the trustee company boards of public offer funds should be independent. Independent trustees are better placed to make objective decisions in the interests of all fund members; conflicts of interest are likely to arise less often and be better managed.”
SMSF trustees take great interest in the subject as many “hold accounts with large managed funds”, the statement said, adding that the self-managed sector does not suffer from the same “trust” issues endemic in the debate about managed fund governance.
[quote name=”chris”]Why do advisers cbnstantly bag the industry funds sector . H Cannot understand why retail advisers and the government are always so politically motivated to get stuck into the industry fund sector .[/quote]
Hilarious!!!!! After all the slanging that ranga Whiteley has done, the insane FoFA reg’s they forced in via Labor, and ‘Chris’ you come out wondering why poor little ISA is finally getting their forensic rectal examination??? You should enter the Melb Comedy Festival you clown 🙂
The arguement of INDUSTRY V RETAIL funds is futile.
At the end of the day, it’s this simple…
SOMEONE WHO GOES THROUGH LIFE BEING GUIDED AND ADVISED BY A PROFESSIONAL ADVISER WILL END UP WAY, WAY, WAY BETTER OFF THAN SOMEONE WHO GOES THROUGH WITHOUT ADVICE.
Even someone in a more expensive retail fund (and they’re not all more expensive these days, about the same, sometimes more, sometimes less) who has had advice to salary sacrifice, invest properly, manage debt efficently, minimise tax, hold suitable protection, use dolar cost averaging, save early for kids education, etc will be miles in front of someone in a super cheap no frills industry fund, having had nil pro-active advice or guidence and probably failing to make the smart financial decisions through their entire life.
END OF STORY!
But they don’t mention that on the TV ads…
All banks, retail funds, etc should pool funds for a campaign about advice vs no advice, over 20 years!…
Sorry Melinda but I have done extensive research on some funds – admittedly not all.
Hi Chris, I was talking to the other chris. I actually agree with you. Industry funds are not always cheaper any more, and certainly there has been research saying that clients with advice will be better off than without advice.
Sorry Melinda but I have done extensive research on some funds – admittedly not all. On SOME of those retail funds the basic fees on similar investments are cheaper than for those industry funds who profess to be cheaper.I have no concerns about people being in industry funds – I just cringe every time I hear industry funds say they are cheaper and therefore their clients will end up with more in retirement. This is simply not true in all cases.
“Why do advisers constantly bag the industry fund sector?”
Because unfortunately the information that they are brainwashing people with (obviously including you chris) is not correct or ethical. The fact that you think that their returns are better, and fees are cheaper shows that your information is ill-informed and un-researched. In the fee for service world we are in, it doesn’t matter what product our clients are in, so ask yourself why we still can’t recommend a client remain in the average Industry Super Fund. Remember also that our advice has to be in the client’s best interest. Still not sure why? Do some actual unbiased research. You should also ask yourself why they have to advertise so much if they are so good? Won’t the word get out there anyway if that is the case?
Chris Rock ,I am surprised that you have been so gullible as to believe the industry funds’ assertions that they outperform the retail sector and that they are cheaper. Looking at a like for like (no adviser fees included and investment selections for instance), the retail often more than hold their own. My view is that the advertising of industry funds should be scrutinized.
Wow, can I nominate Gav’s comment as the most arrogant for 2015?
Daresay it will be hard to beat.
No one has the authority to speak on behalf of the IFA Readership or restrict anyone’s freedom of speech.
Grow up Gav.
“Cannot understand why retail advisers and the government are always so politically motivated to get stuck into the industry fund sector .”
Has someone been living under a rock whilst Labour has been blatantly favouring their political buddies in the Unions? Was the article above even read before posting?
Why do advisers cbnstantly bag the industry funds sector . How they run their buisness at times, at the end of the day is not that relevant . Each to their own as long as statutory comitments are met . they consistently beat retail funds for returns on the back of having cheaper fees. That is the best possible outcome for consumers in a cluttered and confusing ” mutual fund universe”. For those entering the workforce for the first time ,there is no doubt industry funds are a better option than sitting on a platform for the first 10 years and paying heavy fees . In all honesty , the consumer cant afford to hire a planner if they are 30 or under . Let the industry fund do the initial building of a lump sum and maybe in 15 years or so consider the move to an SMF portfolio that is index driven. ( unless mum and dad already have an SMF ). Cannot understand why retail advisers and the government are always so politically motivated to get stuck into the industry fund sector .
I wonder if this desire to even the superannuation playing field will extend to Opt-In and annual Fee Disclosure Statements for the ISF sector?
Let’s see how quickly the ISA backs away from these time-wasting exercises as being ‘no longer’ in the consumers best interest when they are forced into the same regime.
Dear IFA
Please don’t bother printing ISA’s garbage response to this new development.
We aren’t interested in their fabricated statistics, misdirection of facts, biased opinions and political diatribe.
Thanks
IFA Readership
Great to hear!! Taking the fight back to the front line directly with the Unions and the insidious ISA funds current upper echelon. Let’s hope the FPA/AFA and large fund managers all have enough sense to strongly, vocally and even financially back this push. This is a chance to clean out the rot in that system and engender a more equitable and better overall financial framework in Australia – with less of the current nonsensical diatribe that the ISA espouse to the media attacking our profession on a daily basis, and cut off the cash cow to the Unions & Labor…