Statement from ASFA CEO Mary Delahunty
Today’s criticism from ASIC Chair Joe Longo that superannuation fund trustees don’t always ‘know their business’ is unfounded and unfair.
Australia’s phenomenally successful super system is the envy of the world, and with good reason.
The typical balanced superannuation fund returned 10.5% to members last year, with some funds returning up to 12%. This is real money in the pockets of real people and comes about through prudent investment and management.
These kinds of returns would simply not be possible if the boards overseeing the governance of super funds didn’t know their business extremely well. The sector has a number of governance models, and each one has been designed to serve the member base within the fund.
ASFA, as the peak body for superannuation and on behalf of the industry, welcomes any constructive approaches to improving the sector.
That’s why we welcomed the government’s decision to bring in mandatory service standards, and look forward to working with stakeholders to advance these important reforms. We know that we need to make improvements in service, especially in complex matters like death benefit claims.
That’s also why the sector has already proactively worked together to commit to common standards for death benefits claims handling and insurance claims handling.
Publicly deriding trustees who oversee institutions that provide Australians with excellent returns on one of their most important investments is a puzzling approach.
Calling one of our country’s biggest success stories “the poster child for what can and does go wrong when governance fails” is not constructive – it is confusing over-reach that risks undermining faith in a vitally important sector that delivers for the vast majority of its members.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
