In a statement, ISA said there needs to be policy stability regarding the role of super funds and that debates on super fund governance need to be evidence based.
“I am confident that the government [is] considering the most appropriate governance of super funds [and] will be reviewing the governance of bank-owned super funds,” ISA chief executive David Whiteley said.
“Specifically, they will want to investigate the trade-off between returns to members and dividends paid to bank shareholders,” he said.
“This conflict is the most obvious cause of tension and inefficiency in Australia’s compulsory super system,” Mr Whiteley said.
Also by calling for the government to look at the evidence, Mr Whiteley said “all the evidence” points to the best model for fund members being the representative trustee model.
“All the evidence points to the representative trustee system being the model that puts members’ best interest front and centre and has delivered stronger investment returns and ultimately bigger super nest eggs,” Mr Whiteley said.
