With tough market conditions, lacklustre performance returns, failed investment schemes and a largely disengaged public, the industry was also faced with lodging a range of submissions to a number of government inquiries.
The Ripoll inquiry has already handed down its recommendations, while The Cooper review has released the first phase of its findings just before the Christmas rush.
Although the recommendations from the Ripoll inquiry were not as far reaching as some may have hoped, it did continue the momentum for phasing out select commissions in the industry.
Commissions of course have been a sticky issue, often linked to the string of collapsed investment schemes and an effective advertising tool for industry super funds.
Big name financial institutions are starting to move to what is anticipated, a fee-for -service model.
The Cooper review also recognised the commission debate, recommending a low cost default super fund option that does not pay commissions to financial advisers.
With an industry now worth more than $1 trillion, the Cooper review predicts growth to double in 16 years.
Professionalism and integrity of the industry will have to go beyond the debate on commissions.
The Cooper review has recognised the importance of subjecting superannuation funds to similar standards as listed companies.
The next phase of the review will look at the operation and efficiency of the industry, with recommendations due to be handed down early next year.
It will be interesting to see how far reaching the proposed reforms will be and more importantly how the federal government will act on all of its parliamentary inquiries.
There may also be a glimmer of hope on the investment horizon. According to the latest Chant West report, superannuation funds are expected to continue to post double-digit returns.
Let’s hope 2010 can be a little brighter. This will be our last Investor Weekly edition for the year. The team here wishes all our readers a safe and happy festive season.
