Financial Services and Superannuation Minister Bill Shorten has rejected suggestions troubled industry superannuation fund MTAA Super should be considered a serious industry issue in the same vein as Storm Financial and Trio Capital.
At an Association of Financial Advisers luncheon earlier this week, Shorten defended the industry fund from comparison to the failed financial services firms, declaring such a statement was going too far.
“I do not accept your analogy of Storm and Trio with that particular fund. I think that’s a big statement to make and I think one has to be careful before you start trashing a fund’s name in that manner,” he said.
“If you think that fund is the same as Storm and Trio, then you should report it. But in the meantime I’m not going to start engaging in pushing one class of fund over another.”
His comments came in response to a question from a corporate superannuation participant who challenged him on the Productivity Commission’s selection of MTAA and why the fund, which reported losses of more than $1.6 billion in 2009, was not considered as serious an issue as Storm and Trio.
“Why is MTAA still being selected? Also, is it not a serious issue such as Storm and Trio?” President of the Corporate Super Specialist Alliance Douglas Latto said.
“Do you not have an obligation to the Australian public to commence the default fund selection review for modern awards as soon as possible rather than defer it until next year?”
At the conclusion of his response to the question, Shorten said the industry needed to turn its focus away from sectors badmouthing each other and concentrate on the client.
“I’m a bit over one set of funds, be it the retail funds, bagging the industry funds or the corporate funds bagging the industry funds or the industry funds bagging the retail funds and everyone bagging SMSFs [self-managed superannuation funds] and the SMSFs not really bagging anyone just getting on with life,” he said.
“As the Minister, despite what you think about corporate funds, or what people and unions think about industry funds or what some planners think about retail funds or what some accountants think about SMSFs, I’m not about picking winners. I want them all to perform well.”
