Speaking to InvestorDaily, Senator Sinodinos dismissed claims made in the Australian Financial Review by Australian Workers Union boss and AustralianSuper deputy chair Paul Howes about risks in the self-managed super fund sector.
“The real answer to Paul Howes is that people like him prefer the money to be tied up in the industry funds where people like [him] make decisions in the name of their members,” the Assistant Treasurer said.
“Well we want a system where the members drive the change and that’s why we want the fund governance sorted out so industry funds and other funds have more independent directors on there and there is more member power.
“We want people power in industry funds and other funds, we don’t want union power.”
Senator Sinodinos reiterated the government’s position that introducing new governance requirements for superannuation funds will see more independent directors on boards thereby reducing the influence of trade unions and other interest groups.
More broadly, Mr Sinodinos defended the “philosophy of people who are taking decisions and taking responsibility for themselves” underpinning self-managed superannuation, but voiced opposition to the notion of a compensation scheme for the sector.
"Our philosophical position is it’s a light-touch regulatory regime, and therefore people have responsibility for their financial decision-making and it’s not up to government to compensate them and potentially create a moral hazard, which encourages excessive risk taking,” he said.
