No industry stone has been overturned this year without a taskforce being formed, an investigation taking place or an industry review launched.
Yes, I may jest a little, however, the introduction of many industry reviews has also come at a time when Australia’s financial services industry has needed them the most.
Last week, Superannuation and Corporate Law Minister Nick Sherry informed the market about the progress of the government’s next big review – an examination of the superannuation system.
Sherry has been pounding the pavement for the past 12 months talking about a review of super. It was not until last week that clarity over what the review would entail was provided.
The review will be headed up by ASIC deputy chair Jeremy Cooper.
Cooper will lead a five-person panel made up of part-time members and industry participants Sandy Grant, Brian Wilson, Kevin Casey, Greg Evans and David Gruen.
The terms of reference will look at the governance, efficiency, structure and operation of Australia’s superannuation industry.
The review of Australia’s super system will not only be a milestone for the country but comes at a crucial juncture.
The loss in confidence in superannuation, due to the global market downturn, has left many not only doubting their retirement earnings but also doubting the expertise of superannuation fund providers and financial advisers.
So intensely have many Australians felt about the losses of their super accounts that the number of self-managed superannuation funds (SMSF) has swelled at a frantic pace, with more than 30,000 funds established in 2007/08.
While Australians taking control of their own super savings has a level of merit, it surely needs to be done so with a level of education and understanding of the intricate tax and superannuation rules.
The decision to establish an SMSF should be done so on the basis of these options and not on the basis of “I could do better” or “well, if I’m going to lose the money anyway”.
Sherry’s announcement follows the government’s decision last month to establish a communiqué of principles on the superannuation system, including a review of its operation.
The findings of the review will be handed to the government by 30 June 2010.
