An independent and concise summary of the week's superannuation industry news

1. While all care has been taken to ensure the accuracy
of the information presented, QMV Super Solutions
is not responsible for any loss or damage suffered in
relying on the information presented.
QMV
QMV Super Solutions specialise in the delivery of world-class technology
and business solutions for the superannuation and wealth management
industries. With a fresh approach to solving complex process issues, our
tailored solutions are delivered by a bright young team who are experts in
their fields, and passionate about results.
qmvsupersolutions.com
SuperBrief Independent & Concise
Issue #31 of 2015: Friday, 7th
August
RETIREMENT
The Australian Institute of
Superannuation Trustees (AIST)
and AustralianSuper have
released a joint paper titled
“Busting the $1 million
retirement myth”, saying that
the focus on larger balances is
only causing confusion and
disengagement among
members. The paper argues
that most Australians won’t
retire with large balances, and
highlights that even a fairly
modest super balance can
provide significant benefits in
retirement.
Source: AIST
ADVICE
A survey of 19 not-for-profit
superannuation funds,
conducted by the Australian
Institute of Superannuation
Trustees (AIST) and Industry
Super Australia (ISA), has
indicated the benefits of the
Future of Financial Advice
(FoFA) reforms are being met.
Showing an existing increase in
provision of small scale, simple
advice to members, the survey
also highlights expected growth
of advice services of 43% over
the next four years.
Source: AIST
SUPERGUARANTEE
The Financial Services Council
CEO, Sally Loane, is the latest to
call for commitment from both
sides of government to increase
superannuation contributions to
12% by 2022. Ms Loane quotes
Rice Warner research that
shows the current pause at 9.5%
is creating a saving gap that
models show is only ever
reduced when a rate of 12% is
used.
Source: FSC
REGULATION
The Australian Securities and
Investments Commission (ASIC)
has released its enforcement
report for June 2015, with 323
enforcements outcomes for the
first six months of the year. ASIC
notes that poor culture is a key
driver of poor conduct, and will
be a major area of review in
the coming six months.
Source: ASIC
REFORM
Michael Keating, former
Secretary of the Department of
Prime Minister and Cabinet
under the Hawke government,
and one of the original
architects of the Australian
superannuation system, has
admitted it was a mistake not
defining the purpose of
superannuation when it was
introduced in 1992. Mr Keating
said that addressing this now
would help promote more
predictable policy, as well as
reducing the risk of continual
piecemeal reform. Mr Keating
joins a growing crowd stating
that “the time is right for a
much more holistic approach
to reform”.
Source: Canberra Times
In a recent speech, Shadow
Treasurer, Chris Bowen, has
reiterated the Oppositions
commitment to reducing tax
concessions for high balance
superannuation account
holders (>$1.5 million), stating
that the sustainability of
superannuation tax concessions
needs to be addressed, despite
the Governments dismissal of
the concerns.
Source: Money Management
REMEDIATION
Ausbil has informed investors
that it has identified
inconsistencies in fee charges
between what’s outlined in the
funds PDS, and what’s allowed
under the funds constitution,
with the errors covering a ten
year period between 2004 and
2014. The fund has already
been compensating impacted
investors, with the final
compensation package
totalling $18 million.
Source: Investor Daily