In an article on the Westpac website, BT Financial Group chief executive Brad Cooper said recommendations made in the Productivity Commission (PC)’s draft report on efficiency and competition in the superannuation system would be more beneficial to members than the current system.
“Until now, BT has supported an “open market” model in which any Australian Prudential Regulation Authority-approved MySuper product was free to compete for default status as opposed to one where an independent body, potentially susceptible to political influence, is responsible for selecting a shortlist,” Mr Cooper said.
“The Productivity Commission’s report, however, provides compelling analysis and has led BT to conclude that a different model is necessary to protect consumers from account duplication, underperforming funds and balance erosion.”
Mr Cooper said the proposals, which would see a government-established panel select a shortlist of ten “best in show” funds to guide consumer choice and have consumers only default once, would be “in the best interests of consumers” and create a stronger superannuation system.
“The PC has made it clear to the industry the standard every superannuation fund must meet to rightfully claim they are worthy of default status,” Mr Cooper said.
“Let’s not let this opportunity to transform the superannuation industry – and in the process lift the retirement incomes of millions of Australians – pass us by. It’s time for the industry to show leadership and for the superannuation system to deliver on its promise.”
