Govt backs Sherry review despite industry concerns
Review to be fair and comprehensive
By
Kate Kachor and Christine St Anne Mon 28 Jul 2008
The Rudd Government has stood by Nick Sherry over the proposed review of Australia's superannuation system.
The Federal Government has stood by Superannuation and Corporate Law Minister Nick Sherry over the proposed review of Australia's superannuation system, stating it is committed to a fair and extensive review process.
"The Government is committed to a full, fair and comprehensive process to ensure our superannuation system serves the interests of all Australians during their retirement," a spokesperson for Sherry told InvestorDaily.
The Government's comments come as industry bodies and individual financial advisers voice concerns over the review.
Sherry announced his planned review of superannuation earlier this month, sparking much debate with some suggesting Sherry is using it to fuel his own agenda, particularly over the push for the exclusion of adviser commissions.
"It's a very broad debate. Sherry is totally committed with his mates to jam it up our industry. We're totally aware of that and I just think that people don't understand what it means on the ground when you revert back to what they did in 1990," an unnamed planner with more than 20 years experience said.
However, association members should not be overly focused on the fee and commissions debate, with Sherry's planned review expected to focus on all areas of superannuation, FPA chief executive Jo-Anne Bloch said.
"Minister Sherry has stated that he is reviewing 'the operation, structure and cost of the superannuation industry' across all sectors, starting with self-managed super funds, and covering industry, retail, corporate and public sector funds. Members should not be concerned about this," Bloch said.
The Investment and Financial Services Association (IFSA) also wants the review to explore areas outside of fees.
"The review should look at a number of things in addition to fees, all of which are critical to the efficiency and competiveness of the wealth management industry. They include a review of public offer funds, unit pricing and advertising - particularly a focus on the messages in current advertising in the super industry," IFSA chief executive Richard Gilbert said.
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