Industry Super Australia (ISA) has called for the government to get its priorities straight and fix the superannuation system’s grassroots issues rather than revising governance models in favour of bank-owned super funds.
The statement comes in response to reports that suggest the government is preparing a series of Bills that could dismantle the current governance model of industry super funds, while giving bank-owned finds a ‘leave pass’ on selected new disclosure and transparency requirements, according to ISA.
ISA chief executive, David Whiteley, criticised the timing of these Bills in the wake of ongoing revelations about poor governance, culture and conduct by the wealth management arms of Australia’s leading banks:
“Industry super funds are deliberately different and have been immune to the scandals that continue to cause significant consumer loss and hardship”.
“Member-first governance and culture is the reason industry super funds outperform bank-owned super funds”.
“The success of the trustee governance model is evident in the outperformance of the industry super sector over the bank-owned super sector.”
Mr Whiteley added that the government’s priority should be tackling the super issues most directly facing everyday Australians, including fixing unpaid super, closing the gender gap, and helping Australians to consolidate their multiple super accounts.