FSC chief executive John Brogden said retail funds have “outperformed” industry funds since the GFC and the “latest data from APRA support this trend”.
“Industry funds are calling for new measures to restrict competition and cement their monopoly position in industrial awards,” Mr Brogden said.
“This would exclude the country’s best performing default funds from being available to millions of employees.”
ISA chief executive David Whiteley said bank-owned super funds are “applying relentless pressure” to abolish the “safety net” on which an overwhelming majority of Australians rely for their retirement savings.
“With the freeze of the super guarantee, there couldn’t be a more important time to find ways to strengthen the super safety net on which an overwhelming majority of Australians rely for their retirement savings,” Mr Whiteley said.
“The banks want to leverage their business banking relationships with employers to cross-sell employee default super arrangements, irrespective of the investment returns,” he said.
“Removing the safety net risks member returns and the capacity of funds to invest in long-term assets such as infrastructure,” Mr Whiteley said.
