Equity Trustees Response to Treasury Consultation - Enhancing Member Protections in the Superannuation System
Superannuation
Superannuation is a cornerstone of Australia’s financial system and plays a critical role in supporting the long-term financial wellbeing of ordinary Australians. As a mandatory retirement savings scheme, it ensures everyone accumulates savings throughout their working lives to fund retirement and reduce reliance on taxpayer support through the age pension. Given this central importance to every individual’s financial dignity and security in retirement, it is essential that any regulatory changes carefully consider impacts on superannuation members and preserve confidence in the entire system.
Our submission strongly opposes the proposal to prohibit the professional independent trustee model, as such a preclusion does not recognise the fundamental risks of vertically integrated trustee models. We submit that banning the professional independent trustee model would have negative impacts to members, the financial services sector, and the Australian economy. Regulation should be applied equally across the entire industry and not favour one model over another. Regulatory reform which aims to provide member protections should instead consider capital requirements. Finally, we also submit that superannuation should not be liable to make good on losses that occur in MISs which are governed by ASIC regulated REs.