ASIC will reportedly investigate deals designed to encourage employers to choose specific super funds as the default fund for their staff to ensure employees’ interests are being best served.
The Australian has reported that the nation’s corporate regulator will look at the deals offered by super funds, often including bundled financial services or other benefits, to encourage employers to select that fund as the default option for their employees.
The New Daily contacted ASIC to confirm the report, but the regulator’s office is closed for New Year’s Eve.
According to the report, the review follows the Productivity Commission’s review of the super sector which proposed a number of changes to the way default funds are selected – including the removal of the employer from the default selection process.
The Productivity Commission’s proposals were welcomed by the for-profit super sector, while the not-for-profit sector cautioned the proposals were “baffling” and too “experimental”.
ASIC will also take a “tougher regulatory approach” towards the superannuation industry, the report said, though what that means for superannuation is not made clear.
John Price, the regulator’s commissioner, said ASIC would implement “enhanced supervisory approach for superannuation” in the subsequent 12 months.
“We have already strengthened our team focused on this area and the team will also move towards a more intensive engagement model, where superannuation stakeholders will deal with specific ASIC staff on a more consistent and regular basis,” he said.
“We will also increase our focus on the consumer perspective through the incorporation of more consumer testing and shadow shopping.”
The New Daily is owned by Industry Super Holdings