After almost a year of hearings and deliberations, the final report from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released yesterday. The report contains 76 recommendations, 9 of which are about superannuation.
We welcome the Commissioner’s recommendations, as they reflect the principles and practices that are foundational to us as an industry fund, seeking to live out Christian ethics and values in all aspects of how we operate.
Christian Super is a profit-to-members fund, which means we exist solely for the benefit of our members. We are also the leading faith-based ethical superannuation fund in Australia. We are committed to always serving with the best interests of our members in mind, recognising the high level of trust our members have put in us as stewards of their retirement savings. We also recognise that Australians are concerned about fees and performance, but are also increasingly wanting to know how their investments and savings are working to improve the world they will retire into.
We are encouraged by the news that both major political parties have agreed to take action on the vast majority of the Commission’s recommendations, and look forward to seeing positive change in the wider financial services industry as a result of the Royal Commission.
Key recommendations concerning super and financial advice:
- People should only have one default super fund.
- Financial advisers who are not independent must disclose this to clients in a prescribed format.
- Ban hawking (the promoting of superannuation products during unrelated financial product discussions).
- Ban grandfathered commissions (attached to some bank and insurance-owned super funds).
- Overhaul executive pay so that incentives are more aligned to non-financial risk.
- Overhaul the culture of the regulators.