Boosting competitiveness in the superannuation system is an FSI recommendation the federal government is taking seriously, says assistant treasurer Josh Frydenberg.
In an exclusive interview with InvestorDaily, Mr Frydenberg said the Financial System Inquiry did a good job at putting the issue of competition in the super sector – or lack thereof – on the agenda, and that the government will carefully consider the report’s reform suggestions.
“Prices have not come down in the superannuation sector consistent with scale in superannuation and one of the reasons is lack of competition,” Mr Frydenberg said.
“My question is ‘Why shouldn’t MySuper products that are APRA-regulated be available to employees and employers as default fund products?’”
The assistant treasurer also reiterated previous comments that appointing greater numbers of independent directors to superannuation fund boards is a core strategy to reforming the sector.
“My argument is the same as the one put forward in David Murray’s report about good governance in superannuation and therefore the equal representation rule. We should be looking at raising the number of independent directors,” Mr Frydenberg said.
However, the minister added that the government has “no beef” with industry funds, revealing that he himself is a member of such a fund.
Mr Frydenberg also dismissed backbench calls for a royal commission into white-collar crime, which would include a focus on the financial planning industry.
“We have no plans for a royal commission [but will] respond to a number of inquiries – FSI, PJC and the ASIC inquiry.
“We are looking at strengthening the powers of ASIC in a number of areas. I have spoken to the [chairman] of ASIC [Greg Medcraft] about the most recent episode at NAB, and he said those investigations are of utmost importance,” Mr Frydenberg said.
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