WA Super News
The Royal Commission Final Report
The Royal Commission's Final Report and key recommendations was released Monday 4 February. But in case you missed it, here’s a brief overview of what the report determined:
- 76 separate recommendations
- 9 superannuation related recommendations
- 24 cases involving misconduct by the banks and other for-profit entities have been referred to the regulators for possible criminal or civil charges
A strong theme of the report is that regulators should do more to enforce existing laws and take stronger action against profit-driven entities that put the interests of shareholders ahead of their members.
Commissioner Hayne observed that, in almost every case, misconduct was driven by businesses pursuing profit and individual greed, and providing service to customers came second. This isn’t the case for WA Super. We are an industry, not-for-profit fund, which together with our member focus allows us to keep our fees low and any profits are reinvested back into the Fund in the form of improved services or lower fees for members.
Our members are at the heart of everything we do.
Our fees are competitive.
Our investment returns are sound.
While both major political parties have agreed to take action on the vast majority of the Commission’s recommendations, it is important to remember that without legislation, these recommendations cannot be implemented. Therefore, it will take time for the impact of the Royal Commission recommendations on super fund members to take effect. And, most of the recommendations will likely have minimal impact on our members.
WA Super is here for the long term and always operates in the best interests of our members.
We’re here to help members achieve their retirement dreams.
Key recommendations concerning super and financial advice
- Banning the hawking of superannuation and insurance products
- People should only have one default super fund
- Financial advisers who are not independent must disclose this to clients in a prescribed format.
- Grandfathered commissions – attached to some bank and insurance-owned super funds – to be banned.
- Overhaul senior management pay so that incentives are more aligned to non-financial risk.
- Overhaul the culture of the regulators
Source: AIST Royal Commission consumer wrap up 2019