Bill Shorten to shake up super
If the Labor Party wins the next federal election, retail superannuation funds could be forced to put members interests ahead of profits.
Opposition leader Bill Shorten put funds owned by banks and other financial institutions on notice in a speech at an event last night.
He said he would enable regulators, such as the Australian Prudential Regulation Authority (APRA), to force those funds to appoint independent trustees to oversee best practice, according to The Australian.
In the wake of the financial services royal commission's revelations of retail funds gouging members on fees, Mr Shorten said the sector was due for a shake up.
He also signalled giving APRA powers to sack trustees of funds that consistently underperformed, robbing members of optimal returns.
Earlier this year, a Productivity Commission report revealed that industry and public sector funds performed better than retail funds, returning higher earnings to members because of their not for profit nature.
Mr Shorten said for profit funds had a conflict of interest whereby they needed to ensure profits for shareholders over returns to members.
“One idea that has emerged from some quarters is: should banks actually be in superannuation?” Mr Shorten said.
“I don’t know about that. One idea, and it’s only an idea … you could require for-profit funds to outsource the trusteeship to genuinely independent organisations,” he said.