Proposals from industry superannuation funds to the Murray Inquiry to further protect themselves from competition are desperate, unworkable and protectionist, the Financial Services Council said today.
Andrew Bragg, FSC Director of Policy said: “The superannuation market is sorely lacking in competition.”
”Despite the introduction of the new MySuper default system, on 1 January, many of the lowest cost products are not in the market due to the anti-competitive and discredited Fair Work Commission.
Mr Bragg also said: “Australians are missing out on the benefits of competition.”
“Higher fees are the only guarantee of the currently anti-competitive superannuation system.”
“We have seen evidence that competition for MySuper products is restricted in the workplace and for individuals.
“It is untenable for union officials and employer organisations to use their positions as directors of industry superannuation funds to lock anyone into a low performing or high fee superannuation fund.”
“Every working Australian should be permitted to select their own superannuation fund,” he said.
As one of Australia’s largest industries, superannuation should have nothing to fear from competition.
Convoluted proposals to hold back dividends to investors are a smokescreen to avoid scrutiny of an anti-competitive super system.
“Parliament does not need to wait for David Murray to open the superannuation system to competition and to improve corporate governance.
“Both are essential reforms which will increase confidence in our otherwise world-leading retirement system.”
