QMV SuperBrief
Independent & Concise
Issue #12 of 2015: Friday, 27th March
FAIR WORK COMMISSION
INSURANCE IN SUPER
SUCCESSOR FUND TRANSFER
The Australian Council of Trade
Unions (ACTU) is lobbying the
Fair Work Commission to raise
the compulsory superannuation
rate for those workers on the
minimum wage when it
undertakes its annual wage
review.
The Trowbridge Review on Retail
Life Insurance Advice has
released its final report. The
report, initiated by the Financial
Services Council (FSC) and the
Association of Financial
Advisers (AFA), makes 11
recommendations. Of the 11
recommendations, 6 are cover
policies and the remaining 5 are
related to the implementation
and review of the reforms.
The Superannuation Complaints
Tribunal (SCT) has recently
handed down a decision that
will order a successor
superannuation fund to refund
fees to members where the fees
charged are in excess of those
which would have been paid in
their previous fund.
Source: Financial Standard
Industry Super Australia (ISA)
recently sought legal advice in
terms of the legality of banks
offering business client’s
incentives to switch their
employee default super
scheme. The law (SIS Act
section 68A) prohibits banks
from offering bank incentives
but there is no civil penalty for
breaching section 68A, which
the ISA wants to change.
The ACTU believes that nearly 2
million low paid workers are
$167 million worse off a year
due to the delaying of the
employer contributions increase
from 9.5 percent to 10 percent
this year.
Source: ABC News
ASFA REPORTING
The Association of
Superannuation Funds of
Australia (ASFA) and State Street
Global Investors have released
‘The future of retirement
income’ report which shows
that diversification and growth
can help retirees’ super last
longer.
According to the report, retirees
with a defensive portfolio could
expect to draw down their
super until the age of 90
whereas retirees in a diversified
portfolio could expect to draw
down until the age of 98.
Source: ASFA
Industry Super Australia’s
Deputy Chief Executive, Robbie
Campo believes that the
Trowbridge Report on the retail
life insurance industry fails to
properly cover the issue of
conflicted remuneration.
Robbie Campo explains, “While
the report’s proposal may deal
with the most egregious
situation of churn, it fails to
tackle the fundamental conflict
cause by the existence of
commissions, even if capped”.
Source: Industry Super Australia
Don Trapnell, Synchron director,
believes the Trowbridge report
recommendations to cap
adviser remuneration will have
commercial ramifications, “The
commercial reality is that if the
numbers don’t stack up, any
business of any size is out of
business”.
Source: Money Management
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
Source: Super Review
DEFAULT SUPERANNUATION
Source: Financial Standard
APPOINTMENTS
Lynelle Briggs will replace John
Coombs on Maritime Super’s
board as an independent
director.
Source: Investor Daily
LUCRF Super has appointed
Martin Drew, previously of First
State Super, as the new head of
investments.
Source: Investor Daily
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.