Fund Regulatory Update

AIOFP wants specialist panel and ASIC to look at compliance

The executive director of the Association of Independently Owned Financial Professionals (AIOFP), Peter Johnston, wants a panel of experienced advisers and AISC to look more closely at the compliance regime to help reduce the burden on financial advisers. Johnston wants ‘fair and reasonable adjustments’ to relevant legislation, but with financial advisers on the panel, not just academics who have no practical experience.

Johnston wants the panel to include experienced financial advisers in conjunction with the Australian Securities and Investments Commission (ASIC) in regular meetings to tackle the issues, reduce the burdens and ultimately drop the cost of advice.

Retirement Income Covenant now law

Parliament has approved new laws to protect retirees, with the move to pass the Retirement Income Covenant into law. These reforms help superannuation funds prioritise the needs of members, both those in the accumulation phase and the retirement phase. The new law spells out the requirement of super funds to give the same attention to both phases so benefits can be enjoyed across both stages.

ASFA wants baby bonus in super

The Association of Superannuation Funds of Australia (ASFA) has urged the government to introduce a $5,000 Super Baby Bonus for new parents, including those who adopt, to be paid into superannuation accounts directly.

There is currently a large gap in the superannuation balances between men and women, with women having 23 per cent less savings at retirement. The main reason for this is women taking time out of the workforce to care for children. The amount of $5,000 is based on contributions from a job paying $60,000 per year.