Fund Product, Company and Regulatory Updates as at 15 October 2019
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Product Updates
SuperBooster initiative launched for greater super engagement
Money magazine and several of the largest superannuation funds in Australia have joined forces to try to encourage the masses to get involved with their super. At the core of the project is the idea that more active superannuation members lead to improved financial wellbeing.
The project aims to show Aussies that the process of checking, contributing and consolidating superannuation isn’t as complicated as it seems and could make a huge difference to retirement outcomes.
Recreo announces the launch of cloud-based super admin platform
OneTrust is a new cloud-based superannuation administration platform created in partnership with Recreo and Mine Super, a superannuation fund. The platform can run a range of schemes with automated workflow.
Milford AM launches open-ended fund
The Milford Dynamic Fund is being launched by Milford Asset Management to build on the success of their previous fund, the Milford Australian Absolute Growth Fund. The Milford Dynamic Fund is an open-ended small and mid-cap Australian equity fund looking to outperform the S&P/ASX Small Ordinaries index. The fund is the Australian version of the firm’s New Zealand dynamic fund offering.
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Company Updates
Dow Chemicals super fund and Equipsuper merged
The Dow Australia Superannuation Fund has been merged with Equipsuper after a review found that in future, the Dow Chemicals Australia fund would end up with far fewer members.
The Dow corporate superannuation fund is 47 years old, established in 1972 for the Dow family of companies, with just under 400 members. Dow was split into three companies earlier this year and a review found that the new companies would be unable to contribute to the fund and thus leave it without enough future members to sustain it.
AMP creates new entity after restructure, gets new bosses and a Shonky award
AMP Australia is the combination of AMP’s wealth management business with its banking business, with the change designed to offer customers more holistic wealth services.
The change in structure comes with a change in leadership, with Sally Bruce stepping down as AMP Bank chief executive, and the AMP Australia being led by Alex Wade. Wade is currently the CEO of AMP’s Australian Wealth Management. Rod Finch is to move to AMP Bank’s managing director role, from his current role as managing director of wealth products and platforms. Lara Bourguignon, the current CEO of SuperConcepts, will fill his role.
AMP was recently awarded a ‘Shonky’ award by consumer advocate group CHOICE for its ‘grossly underperforming’ superannuation division, poking holes in the AMP Retirement Trust and Super Savings Trust products.
IOOF drops Perennial Value
IOOF divested itself of its 52.4 per cent stake in Perennial Value Management, with the interest picked up by senior executives of the company.
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Regulatory Updates
CommInsure facing $1.8m in penalties for unsolicited sales calls
CommInsure has been charged with 87 counts of making unsolicited calls for the sale of life insurance policies in 2014 and as a result, may face up to $1.8 million in penalties. ASIC alleges that the insurer was unlawfully selling life insurance via phone after they gave customer details to a telemarketing firm. This, says ASIC, amounts to unsolicited sales calls and thus a contravention of the hawking exceptions in the Corporations Act.
Economics Committee reviewing super sector
A government committee is to scrutinise the superannuation sector in Canberra over two full days as it reviews the four major banks and other financial institutions. The examination will include how the banks are faring with the recommendations after the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The House of Representatives Standing Committee on Economics will hold hearings on 21 and 22 November.
