Is the Government Viewing Superannuation as a "honey pot"?
"Yes", according to Andrew Frith of the Self-Managed Super Specialists. Andrew was commenting on the claim by the Association of Superannuation Funds in Australia (ASFA) that the Government is increasingly viewing regulated superannuation funds as a ‘honey pot’. Industry associations, including ASFA, are fighting the further use of members’ accounts to fund compensation levies and compensation arrangements.
Association of Superannuation Funds
Agreeing with the ASFA claims "that it would be inappropriate for superannuation funds to be levied other than where misconduct has caused a superannuation fund to fail" Andrew further agrees that any type of levy should be both statutory and as a matter of last resort so that it should only apply where the financial services provider is insolvent and there is no other opportunity or avenue for compensation."
He continued "that the last thing superannuation funds need is for cross subsidisation of risky investment products by those that are less risky. Similarly, the responsibility for the choice of investments products lies with the fund's trustees, irrespective as to whether it is a large APRA regulated fund or a self-managed super fund."
"And, let's have some clear business rules and guidelines from the regulatory body and government in place before applying a levy, not change minds mid-stream and ask questions after applying the levy" Andrew concluded.
For more information about self managed superannuation funds and superannuation visit www.self-managedsuperfund.com.au
