In its submission to the Financial System Inquiry, AIST argued the government needs to introduce an “over-arching body to actively coordinate the role of the three superannuation regulators as well as other regulators in the financial sector”.
AIST chief executive Tom Garcia said while AIST supports the distinct role of all three regulators involved in superannuation there needs to be a higher level of formal coordination between each of the bodies.
Mr Garcia said this will increase efficiency and “prevent unnecessary and costly red tape”.
“We need to ensure that areas of duplication and overlap are identified and that regulatory requirements are applied in the most efficient manner and always in the best interests of members,” said Mr Garcia.
AIST also argued the CFR should be responsible for developing benchmarks on sustainability, adequacy and longevity to ensure the superannuation industry continues to fulfil its objectives.
AIST said CFR should have a role in developing broad, overarching superannuation policy and test policy changes against these benchmarks.
Mr Garcia said a nationally accepted definition of what adequate retirement income is will enable governments to better define the role of superannuation and measure its present and future performance.
“If we can get bi-partisan agreement on benchmark measures for key issues like adequacy and sustainability, then hopefully we can avoid some of the short-term policy tinkering of the past and move to a system that has a clear and considered long-term focus,” said Mr Garcia.
AIST also suggested ASIC could perform a role in providing stronger consumer protection for superannuation members.
It recommended “greater consumer-friendly transparency and disclosure, removal of barriers to e-commerce, and removal of unnecessary red tape”.
