Retail superannuation fund

In Australia, the term 'Retail superannuation fund' refers to a superannuation provider that is not an Industry superannuation fund, and so weren't established by a trade union as a method of managing worker retirement savings.[1][2][3]

There are various providers of retail super funds in Australia. Australia's four major banks, historically provided superannuation as a component of wealth management services. In recent years however, some international players have entered the market including Vanguard.

Retail fund managers have lobbied for legislative changes that reduce a differential treatment between industry funds and retail funds. One reform that has been advocated for is the de-regulation of workplace default funds; such as by removing certain funds from being a default payment option under Australia's award system.

Not being established in the manner of industry funds, the boards of trustees for retail funds typically do not consist of trade union or employer representatives.

Major retail funds

As at July 2018, the major retail super funds were:

Now defunct funds include:

  • BT Super For Life (Westpac) - (Acquired by Mercer)

History

In 2012, the Abbott government committed to opening up the default fund section system suggesting that doing so will generate greater competition.[5]

Hayne royal commission

Testimony at the Hayne Royal Commission highlighted conflicts of interest where retail super funds are owned by banks; including bank advisors recommending a retail super fund to their customers, even where not in the best interest of the prospective member.[6] Following the Royal Commission, several banks commenced processes to dispose of their wealth management divisions.[6]

See also

References

  1. "Insignia Financial fined $1.5m for failing to invest members' funds". Australian Financial Review. 2023-06-13. Retrieved 2023-06-17.
  2. "What's the difference between industry and retail super funds?". RateCity.com.au. Retrieved 2023-06-17.
  3. Collett, John (2023-04-11). "How super giant Mercer is hoping to spark a retail fund revival". The Sydney Morning Herald. Retrieved 2023-06-17.
  4. Drummond, Shaun (31 March 2016). "ING Australia full-year profit rises 6pc on new customers". The Sydney Morning Herald. Fairfax Media. Retrieved 1 April 2016.
  5. "Abbott must prepare for super fund fight". ABC News. 2012-03-29. Retrieved 2022-04-24.
  6. The Age, 22 September 2018, Everything you need to know about the royal commission so far


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.