Release of the Financial System Inquiries report

On 7 December 2014, on behalf of the Government, the Federal Treasurer, Joe Hockey,  released the Financial System Inquiry Report with its aim to provide a blue print for the financial system over the next decade.

Citing the changing landscape since the time of the Wallis Report in 1997, which examined the regulatory arrangements in the Australian financial sector, the Treasurer noted that total Australian superannuation assets were approximately $300 Billion in 1996-7, whereas, today they have reached in 2014-15, $1.8 trillion.

ASFA noted that of the 44 recommendations in the Report, at least 28 of them have the potential to impact on superannuation and retirement savings and lent its support to most of the suggestions. The AIST welcomed the Report, while recognising that “MySuper should be given the opportunity to deliver improved outcomes for default members before any further reforms are considered.”  Tom Garcia, CEO of the AIST, said the AIST would not support the Inquiry’s recommendation to mandate a majority of independents on super fund boards.

Treasury says it will consult with stakeholders up until 31  March 2015, before  making any decisions on the recommendations.

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