Industry Super Australia’s claims that super funds that are subsidiaries of banks can give employers egregious incentives to cross-sell products is wrong in law.
John Brogden, CEO of the FSC said: “We have legal advice which confirms that superannuation funds and related parties cannot provide inducements to employers to secure a workplace deal.”
“Section 68A of the Superannuation Industry Supervision Act clearly prevents a related party of a superannuation fund – such as a bank – from paying an inducement to an employer to secure workplace default fund status,” Mr Brogden said.
“The only conflicts in superannuation are the deals made by unions and employer groups through the Fair Work Commission.”
“The MySuper default fund selection process is not merit based or transparent.”
“APRA is the quality filter for all superannuation funds. There is no place for selection of default funds in the industrial system,” Mr Brogden said.
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