Footnotes

Chapter 1 - Introduction

[1]        Mr Alex Dunnin, Executive Director, Rainmaker Information Pty Ltd, Committee Hansard, 24 October, Sydney, 2006, p. 77.

[2]        Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 90.

[3]        Mr Frank Gullone, Chief Executive Officer, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 18.

Chapter 2 - Prudential framework, industry trends and benchmarking international practice

[1]        Superannuation ready reckoner: taxation and preservation rules for 2004-05—revised February 2005, Research Brief no. 10, 2004-05, Department of the Parliamentary Library, 14 February 2005, pp. 8-9.

[2]        An adequate superannuation-based retirement income?, Research Brief no. 12, 2005-06, Department of the Parliamentary Library, 16 March 2006, p. 9.

[3]        Australian Financial System Inquiry, Final Report (Wallis Report), Canberra, AGPS, March, 1997.

[4]        Mr Jeremy Cooper, The integration of financial regulatory authorities – the Australian experience, paper presented to the Securities and Exchange Commission of Brazil, 30th Anniversary Conference, Assessing the Present, Conceiving the Future, 4-5 September 2006, p. 3.

[5]        Prudential Supervision and Consumer Protection for Superannuation, Banking and Financial Services: First Report, Senate Select Committee on Superannuation and Financial Services, August 2001, pp. 5-6.

[6]        Australian National Audit Office, APRA's Prudential Supervision of Superannuation Entities, Audit report No.6 2003-04, pp. 21-22.

[7]        Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, p. 9.

[8]        Treasury, Submission 55, p. 3.

[9]        Australian Bankers' Association, Submission 88, p. 9.

[10]      From July 2007, ASIC rationalised and redesigned its regulatory documents to include consultation papers, regulatory guides, reports and information sheets. For details see 'ASIC''s Better Regulation: New Regulatory Documents and Road Map', Information Release IR 07-36, Thursday 5 July 2007.

[11]      ASIC, Submission 48, pp. 5-7.

[12]      ATO, Submission 36, p. 2.

[13]      Treasury, Submission 55, p. 6.

[14]      Mr Mark Cerche, Chairman, Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, p. 37.

[15]      APRA, Submission 51, p. 4.

[16]      Treasury, Submission 55, p. 6.

[17]      Australian Prudential Regulation Authority, Licensing and registering a superannuation entity: Explanatory guide on licensing and registration, July 2004, pp. 6-7.

[18]      APRA, Submission 51, p. 4.

[19]      Australian Prudential Regulation Authority, Superannuation Circular no. III.A.4, The Sole Purpose Test, February 2001

[20]      Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, pp. 117-18.

[21]      Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, p. xx.

[22]      Mr Anthony Asher, Consultant, Trowbridge Deloitte, Committee Hansard, 7 March 2007, Sydney, p. 43.

[23]      Trowbridge Deloitte, Submission 80, p. 17.

[24]      Mr John Ward, Principal Manager, Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, p. 65.

[25]      Mr Michael Davison, Superannuation Policy Adviser, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 59.

[26]      'APRA figures show superannuation assets reach $1.0 trillion', APRA Media Release, 29 March 2007; Jonathan Barrett and Brendan Smith, ' Super industry swamped by cash flow', Australian Financial Review, 21 January 2007, pp. 40-41.

[27]      Treasury, Submission 55, p. 4.

[28]      APRA, Quarterly Superannuation Performance March 2007, issued 28 June 2007.

[29]      'APRA figures show superannuation assets reach $1.1 trillion', Media release No. 07.22, 28 June 2007.

[30]      Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, pp. 20-21.

[31]      APRA, Quarterly Superannuation Performance March 2007, issued 28 June 2007, p. 5.

[32]      Australia's corporate regulators—the ACCC, ASIC and APRA, Research brief no. 16 2004-05, Department of the Parliamentary Library, 14 June 2005, p. 9.

[33]      An eligible choice fund is a complying superannuation fund, a retirement savings account, a fund presumed to be a complying superannuation scheme under section 24 of the Superannuation Guarantee (Administration) Act 1992, or a fund presumed to be a complying superannuation fund under section 25 of the act.

[34]      Superannuation ready reckoner: taxation and preservation rules for 2004-05—revised February 2005, Research Brief no. 10, 2004-05, 14 February 2005, pp. 9-10.

[35]      Superannuation Legislation Amendment (Choice of Superannuation Funds) Bill 2002, Bills Digest No. 31 2002-03, Department of the Parliamentary Library, pp. 13-14.

[36]      APRA, 'Adoption of International Financial Reporting Standards', Discussion Paper, 24 February 2005, p. 17. See also Guest, R. et al, 'Employees' Choice of Superannuation Plan: Effects of Risk Transfer Costs', Journal of Industrial Relations, Vol 46, No. 1, March 2004, p.  2.

[37]      Guest, R. et al, 'Employees' Choice of Superannuation Plan: Effects of Risk Transfer Costs', Journal of Industrial Relations, Vol 46, No. 1, March 2004, p. 2.

[38]      Treasury, Submission55, p. 17.

[39]      Allan Borowski, 'The revolution that faltered: two decades of reform of Australia's retirement income system', International Social Security Review, vol.58, no.4, 2005, p. 46.

[40]      Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, p. 19.

[41]      Recruitment and Consulting Services Association and the Professional Associations Superannuation Limited, Submission 56, p. 11.

[42]      Leslie Nielson, Benchmarking Australian Superannuation Regulation and Practice, Department of the Parliamentary Library, Economics Section, May 2007, p. 23.

[43]      John Stensholt and James Thomson, "The super 'time-bomb'", Business Review Weekly, vol.25, no.14, 17-23 April 2003, p. 15.

[44]      APRA, 'APRA releases results of defined benefit superannuation funds survey', Media Release, 27 March 2003.

[45]      Leslie Nielson, Benchmarking Australian Superannuation Regulation and Practice, Department of the Parliamentary Library, Economics Section, May 2007, p. 24.

[46]      A final version of the paper was presented to the committee in May 2007 and subsequently made available as a public document on the committee's inquiry website: Leslie Nielson, Benchmarking Australian Superannuation Regulation and Practice, Department of the Parliamentary Library, Economics Section, May 2007.

[47]      APRA, Submission 51, p. 12.

[48]      The IOPS describes itself as an independent international body representing those involved in the supervision of private pension arrangements.

[49]      The International Organisation of Pension Supervisors, IOPS Principles of Private Pension Supervision, 7 December 2006, Istanbul, Turkey, p. 2.

[50]      The International Organisation of Pension Supervisors, IOPS Principles of Private Pension Supervision, 7 December 2006, Istanbul, Turkey.

[51]      The IOPS currently has around 60 members and observers representing approximately 50 countries and territories worldwide.

[52]      Leslie Nielson, Benchmarking Australian Superannuation Regulation and Practice, Department of the Parliamentary Library, Economics Section, May 2007, p. 3.

[53]      ASFA, Submission 68, p. 42.

[54]      Treasury, Submission 55, p. 24.

[55]      Treasury, Submission 55, p. 24.

[56]      ASFA, Submission 68, pp. 41-42.

[57]      Leslie Nielson, Benchmarking Australian Superannuation Regulation and Practice, , Department of the Parliamentary Library, Economics Section, May 2007, pp. 3-4.

Chapter 3 - Transparency in reporting requirements

[1]        Brendan Swift, 'Choice of fund inspires super spending', Australian Financial Review, 10 January 2007, p. 42, based on research by Nielsen Media Research AdEx. Industry funds point out that they represent only 7 per cent of advertising within the financial services sector, compared with a 38 per cent share held by financial planners and a 22 per cent share by market and retail super funds. See, for example, Industry Super Network, Submission 77, p. 13.

[2]        ASIC, 'Industry Fund Services agrees to change advertising', Press Release 05-148, 3 June 2005.

[3]        Comprehensive coverage of the Sole Purpose test can be found in Superannuation Circular no.III.A4, Australian Prudential Regulation Authority, February 2001.

[4]        SIS Act section 62(1)(b), regulations 6.01, and schedule one items 103, 108, and 109.

[5]        Superannuation Circular no.III.A.4, Australian Prudential Regulation Authority, February 2001, para. 42.

[6]        Letter to trustees of all APRA-regulated superannuation funds, Mr Ross Jones, 14 March 2005, reproduced from APRA, Submission 51, p. 11.

[7]        Industry Super Network, Submission 77, p. 14.

[8]        Mr Frank Gullone, Chief Executive Officer, Superpartners, Committee Hansard, 25 October, Melbourne, 2006, p. 15.

[9]        Mr Damian Hill, Chief Executive Officer, REST Superannuation, Committee Hansard, 24 October, Sydney, 2006, p. 57. See also, for example, Mr Michael Potter, Director, Economics and Taxation, Australian Chamber of Commerce and Industry, Committee Hansard, 6 March 2007, Melbourne, p. 43; ESI Super, Submission 85, p. 014; Members Equity Bank, Submission 64, p. 4.

[10]      Mr Garry Weaven, Spokesperson, ISN, Committee Hansard, 6 March 2007, Melbourne, p. 28. See also, for example, Equipsuper, Submission 30, p. 14.

[11]      Mr David Elia, Chief Executive Officer, HostPlus, Committee Hansard, 6 March 2007, Melbourne, p. 55.

[12]      Mr David Elia, Chief Executive Officer, HostPlus, Committee Hansard, 6 March 2007, Melbourne, p. 55.

[13]      ISN, Submission 77, p. 14.

[14]      SuperRatings, Submission 49, p. 9.

[15]      Mr Graeme Colley, Director, SPAA, Committee Hansard, 24 October 2006, Sydney, p. 6.

[16]      Mr John Ward and Mr David Knox, Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, p. 73. See also, for example, Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, pp. 4-5.

[17]      Mr Alex Dunnin, Editorial and Research, Rainmaker Information, Committee Hansard, 24 October 2006, Sydney, p. 74. See also Mr David Elia, Chief Executive Officer, HostPlus, Committee Hansard, 6 March 2007, Melbourne, pp. 55-56.

[18]      Fiducian Portfolio Services, Submission 18, pp. 4-5.

[19]      FPA, Submission 38, p. 13.

[20]      FPA, Submission 38, p. 13.

[21]      Dr Michaela Anderson, Director, Policy and Research, ASFA, Committee Hansard, Sydney, 24 October 2006, p. 33.

[22]      Mr Frank Gullone, Chief Executive Officer, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 13.

[23]      Mr Paul Collins, Manager, Legal Services, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 16.

[24]      Ms Jo-Anne Bloch, Chief Executive Officer, FPA, Committee Hansard, 24 October 2006, Sydney, p. 40.

[25]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, Sydney, 24 October 2006, p. 105. See also Mr Terry Brigden, Member, Superannuation Committee, Law Council of Australia, Committee Hansard, 7 March 2007, Sydney, p. 64; Institute of Chartered Accountants in Australia, Submission 43, p. 7; CPA Australia, Submission 65, p. 8.

[26]      Mr Kevin Beasley, Chief Executive Officer, Professional Associations Superannuation, Committee Hansard, Melbourne, 6 March 2007, p. 10. See also Ms Susan Ryan, President, Board of Directors, Australian Institute of Superannuation Trustees, Committee Hansard, 25 October 2006, Melbourne, pp. 85-86; Dr Peter Burn, Associate Director, Public Policy, Australian Industry Group, Committee Hansard, 7 March 2007, Sydney, p. 70.

[27]      See, for example, Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 5.

[28]      Association of Financial Advisors, Submission 62, p. 10.

[29]      AASB, correspondence, 18 April 2007.

[30]      AASB, correspondence, 18 April 2007.

[31]      ASFA, correspondence, 30 April 2007.

[32]      FPA, Committee Hansard, 24 October 2006, Sydney, p. 41.

[33]      Institute of Chartered Accountants in Australia, Submission 43, p. 7.

[34]      Mr Steve Blizard, Submission 3, p. 10.

[35]      Mr Malcolm Rodgers, Acting Commissioner and Executive Director, Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, pp. 64-65.

[36]      ISN, Submission 77, p. 15.

[37]      IFSA, Submission 60, p. 32.

[38]      Law Council of Australia, Committee Hansard, 7 March 2007, Sydney, p. 61.

[39]      FPA, Submission 38, p. 15.

[40]      Mr David O'Reilly, Policy Director, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 103.

[41]      Mr John Ward, Principal and Manager, Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, p. 66.

[42]      Dr Peter Burn, Associate Director, Public Policy, Australian Industry Group, Committee Hansard, 7 March 2007, Sydney, p. 67.

[43]      Ms Jo-Anne Bloch, Chief Executive Officer, FPA, Committee Hansard, 24 October 2006, Sydney, p. 41.

[44]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 99.

[45]      Mr David Coogan, Treasurer, Board of Directors, Australian Institute of Superannuation Trustees, Committee Hansard, 25 October 2006, Melbourne, p. 82.

[46]      Ms Noelle Kelleher, Member, Financial Advisory Services Centre of Excellence, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 61.

[47]      ISN, Submission 77, p. 15.

[48]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 9.

[49]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 9.

[50]      Mr Senthamangalam Ventkatramani, General Manager (Central), Specialised Institutions Division, APRA, Committee Hansard, 7 March 2007, Sydney, pp. 99-100.

[51]      APRA, Committee Hansard, 7 March 2007, Sydney, pp. 100-101.

[52]      Mr David Coogan, Treasurer, Board of Directors, Australian Institute of Superannuation Trustees, Committee Hansard, 25 October 2006, Melbourne, p. 83.

[53]      Committee Hansard, 6 March 2007, Melbourne, pp. 21-25.

[54]      Senator Chapman, 'Industry Funds Services Pty Ltd', Senate Hansard, 24 June 2004, pp. 25293-96.

[55]      Response to Speech of Senator Grant Chapman incorporated in Hansard – 1.56am, 24 June 2004. made on behalf of Garry Weaven, Executive Chair, Industry Fund Sendees Pty Ltd (IPS) and Mr Sandy Grant, Managing Director of IPS.

[56]      IFSA, Submission 60, pp. 11-12.

[57]      CPA Australia, Submission 65, p. 4.

[58]      Superpartners, Submission 67, pp. 26-27.

[59]      AXA Asia Pacific Holdings, Submission 45, p. 12.

[60]      See for example ASFA, Submission 68, p. 33.

[61]      Dr Bradley Pragnell, Principal Policy Adviser, ASFA, Committee Hansard, 24 October 2006, Sydney, p. 22.

[62]      AXA Asia Pacific Holdings, Submission 45, p. 13.

[63]      Industry Funds Forum, Submission 73, p. 37.

[64]      See for example Industry Funds Forum, Submission 73, p. 37.

[65]      RCSA and PASL, Submission 56, p. 12.

[66]      Superpartners, Submission 67, p. 28.

[67]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 98.

[68]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 99.

[69]      IFSA, Submission 60, p. 12.

[70]      Mr David O'Reilly, Policy Director, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 98.

[71]      Mr Michael Davison, Superannuation Policy Adviser, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 59.

[72]      AXA Asia Pacific Holdings, Submission 45, p. 12.

[73]      Memorandum of Understanding between APRA and ASIC, October 1998, Paragraph 5.1.

[74]      Memorandum of Understanding between APRA and ASIC, October 1998, Paragraph 6.3.

[75]      Mercer Human Resource Consulting, Submission 71, p. 21.

[76]      Australian Bankers' Association, Submission 88, p. 18.

[77]      AXA Asia Pacific Holdings, Submission 45, p. 13.

[78]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 102.

[79]      Treasury, Streamlining prudential regulation: response to 'Rethinking Regulation', December 2006.

[80]      Treasury, Streamlining prudential regulation: response to 'Rethinking Regulation', December 2006, pp. 1-2.

[81]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 110.

[82]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 110.

Chapter 4 - Member investment choice and the role of the trustee

[1]        It is important to note that a trustee cannot be bound by a direction from a member.

[2]        IFSA, Submission 60, p. 20.

[3]        Australian Prudential Regulation Authority, Annual Superannuation Bulletin, June 2006 (issued 22 March 2007), p. 6.

[4]        Choice, Submission 75, p. 7.

[5]        Australian Prudential Regulation Authority, Annual Superannuation Bulletin, June 2006 (issued 22 March 2007), p. 37.

[6]        Mr David Elia, Chief Executive Officer, HostPlus, Committee Hansard, 6 March 2007, Melbourne, p. 62.

[7]        SuperRatings, Submission 49, p. 6.

[8]        Australian Prudential Regulation Authority, Annual Superannuation Bulletin, June 2006 (issued 22 March 2007), p. 6.

[9]        ASFA, Submission 68, p. 23.

[10]      ASIC, Submission 48, p. 14. The revised arrangements to take effect from 1 July 2007 are set out detail in ASIC Policy Statement 184, Superannuation: Delivery of product disclosure strategies.

[11]      APRA, Insight, 'Celebrating 10 years of superannuation data collection', Issue 2 2007, Table 13, pp. 55-56. Figures are for entities with at least $100 million in assets. The distinction between those who consciously decide to remain in the default setting and those who remain so because of disinterestedness in their investment strategy is not captured in the statistics.

[12]      APRA, Insight, 'Celebrating 10 years of superannuation data collection', Issue 2 2007, Table 13, pp. 55-56. Statistics for retail funds do not include eligible rollover funds, which do not offer investment choice.

[13]      Superannuation Industry (Supervision) Act 1993, subsection 52(2)(f).

[14]      Australian Institute of Superannuation Trustees, Submission 79, p. 21.

[15]      Productivity Commission, Review of the Superannuation Industry (Supervision) Act 1993 and Certain other Superannuation Legislation, Report No.18, 10 December 2001, p. 127.

[16]      APRA, Submission 51, p. 8.

[17]      Australian Prudential Regulation Authority, Superannuation Circular No. II.D.1: Managing Investments and Investment Choice, March 2006. This updated version replaced an earlier superannuation circular on investment choice dated April 1999.

[18]      Australian Prudential Regulation Authority, Superannuation Circular No. II.D.1: Managing Investments and Investment Choice, March 2006, p. 4.

[19]      Australian Prudential Regulation Authority, Superannuation Circular No. II.D.1: Managing Investments and Investment Choice, March 2006, p. 11.

[20]      IFF, Submission 73, p. 24.

[21]      Mr John Ward, Principal and Manager, Mercer Human Resource Consulting, Committee Hansard, 25 October 2007, Melbourne, pp. 67-68.

[22]      Corporate Superannuation Association, Submission 28, p. 10.

[23]      MLC, Submission 83, p. 11.

[24]      IFSA, Submission 60, p. 22.

[25]      IFSA, Submission 60, p. 21.

[26]      FPA, Submission 38, p. 10.

[27]      ABA, Submission 88, p. 15.

[28]      Law Council of Australia, Submission 76, pp. 4-6.

[29]      Mr Terry Brigden, Member, Superannuation Committee, Law Council of Australia, Committee Hansard, 7 March 2007, Sydney, p. 60.

[30]      Mr Chris Legg, General Manager, Financial System Division, Treasury, Committee Hansard, Canberra, 20 November 2006, p. 10.

[31]      Mr Chris Legg, General Manager, Financial System Division, Treasury, Committee Hansard, Canberra, 20 November 2006, p. 10.

[32]      APRA, Submission 51, p. 7.

[33]      Australian Prudential Regulation Authority, Superannuation Circular No. II.D.1: Managing Investments and Investment Choice, March 2006, p. 4.

[34]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 93.

[35]      AXA Asia Pacific Holdings, Submission 45, p. 10.

[36]      FPA, Submission 38, p. 10; Promina Financial Services, Submission 37, p. 8.

[37]      IFSA, Submission 60, p. 7.

[38]      Mercer Human Resource Consulting, Submission 71, pp. 12-13.

[39]      IFF, Submission 73, p. 22; REST Superannuation, Submission 54, p. 6.

[40]      Corporate Superannuation Association, Submission 28, p. 10.

[41]      Australian Institute of Superannuation Trustees, Submission 79, p. 22.

[42]      IFF, Submission 73a, p. 7.

[43]      IFF, Submission 73a, p. 23.

[44]      RCSA and PASL, Submission 56, p. 9.

[45]      SuperRatings, Submission 49, p. 7.

[46]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 94.

[47]      ASFA, Submission 68, p. 26.

Chapter 5 - Capital requirements and other safety issues

[1]        APRA, Submission 51, p. 5.

[2]        Australian Prudential Regulation Authority, Superannuation guidance note SGN 150.1, Capital requirements – net tangible assets, July 2004, p. 5.

[3]        Options for Improving the Safety of Superannuation, Report of the Superannuation Working Group, Recommendation 16 'capital adequacy'.

[4]        Investment and Financial Services Association, Submission 60, p. 9.

[5]        Treasury, Submission 55, p. 10.

[6]        APRA, Submission 51, p. 5.

[7]        APRA, Submission 51, p. 5.

[8]        See, for example, Industry Super Network, Submission 77, p. 5.

[9]        IFF, Submission 73, pp. 11-12.

[10]      ASFA, Submission 68, p. 7.

[11]      SuperRatings, Submission 49, p. 3.

[12]      SPAA, Submission 70, p. 5.

[13]      Institute of Chartered Accountants, Submission 43, p. 2.

[14]      MLC, Submission 83, p. 4.

[15]      Mercer Human Resource Consulting, Submission 71, p. 5.

[16]      AFA, Submission 62, p. 3.

[17]      MLC, Submission 83, p. 6.

[18]      MLC Nominees, National Australia Financial Management and National Australia Superannuation Pty Ltd

[19]      MLC, Submission 83, p. 8.

[20]      Mr Steve Tucker, Chief Executive Officer, MLC, Committee Hansard, 7 March 2007, Sydney, p. 76.

[21]      Mr Steve Tucker, Chief Executive Officer, MLC, Committee Hansard, 7 March 2007, Sydney, p. 75.

[22]      Greg Bright, 'APRA "warns" funds on capital adequacy after unit pricing errors hit $750m'.

[23]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 94.

[24]      MLC, Submission 83, pp. 5-7; IFSA, Submission 60, pp. 39-40.

[25]      IFSA, Submission 60, p. 39.

[26]      Mr Steve Tucker, MLC, Committee Hansard, 7 March 2007, Sydney, p. 74.

[27]      Mr Ross Jones, Deputy Chairman, APRA, Committee Hansard, 7 March 2007, Sydney, p. 94.

[28]      Unit pricing: Guide to good practice, Joint ASIC and APRA guide, November 2005, p. 18.

[29]      Mr Steve Tucker, Chief Executive Officer, MLC, Committee Hansard, 7 March 2007, Sydney, p. 74.

[30]      APRA, Submission 51, p. 7.

[31]      Australian Institute of Superannuation Trustees, Submission 79, p. 13.

[32]      Treasury, Submission 55, p. 12.

[33]      Law Council of Australia, Submission 76, p. 3.

[34]      SuperPartners, Submission 67, p. 9.

[35]      IFSA, Submission 60, p. 10.

[36]      Mr Terry Brigden, Member, Superannuation Committee, Law Council of Australia, Committee Hansard, 7 March 2007, Sydney, p. 55.

[37]      IFSA, Submission 60, pp. 10-11.

[38]      Treasury, Submission 55, p. 21.

[39]      ASFA, Submission 68, p. 36.

[40]      Treasury, Submission 51, p. 22.

[41]      Treasury, Submission 51, p. 10.

[42]      Australian Institute of Superannuation Trustees, Submission 79, p. 34.

[43]      Mr Ross Jones, Deputy Chairman, Australian Prudential Regulation Authority, Committee Hansard, 7 March 2007, Sydney, pp. 93, 103.

[44]      REST Superannuation, Submission 54, p. 8.

[45]      Mr Damian Hill, Chief Executive Officer, REST Superannuation, Committee Hansard, 24 October 2006, Sydney, p. 58.

[46]      Equipsuper, Submission 30, p. 16; IFSA, Submission 60, p. 29; Corporate Superannuation Association, Submission 28, p. 11.

[47]      Industry Funds Forum, Submission 73, p. 39.

[48]      Mercer Human Resource Consulting, Submission 71, p. 23.

[49]      Australian Institute of Superannuation Trustees, Submission 79, p. 35.

[50]      Treasury, Submission 55, p. 25.

[51]      APRA, Submission 51, p. 13.

[52]      Trowbridge Deloitte, Submission 80, p. 9.

[53]      Mercer Human Resource Consulting, Submission 71, p. 30.

[54]      Industry Funds Forum, Submission 73, p. 45.

[55]      IFSA, Submission 60, p. 36.

[56]      ASFA, Submission 68, p. 44.

[57]      SuperRatings, Submission 49, p. 11.

[58]      Industry Funds Forum, Submission 73, p. 46.

[59]      SuperRatings, Submission 49, p. 11.

[60]      Employers are required to pay their Superannuation Guarantee (SG) contributions on behalf of employees with 28 days of the end of the quarter in which the SG contributions are due.

[61]      ACTU, Submission 72, p. 17.

[62]      Australian Institute of Superannuation Trustees, Submission 79, p. 43.

[63]      ACCI, Submission 66, p. 8.

[64]      Mercer Human Resource Consulting, Submission 71, p. 31; ACTU, Submission 72, p. 18.

[65]      ASFA, Submission 68, p. 43.

[66]      Mr Jeff Bresnaham, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 14.

[67]      Mercer Human Resource Consulting, Submission 71, p. 30.

[68]      Parliamentary Joint Committee on Corporations and Financial Services, Corporations Amendment (Insolvency) Bill 2007 [Exposure Draft], Report, March 2007, p. 20.

[69]      Tax Laws Amendment (Simplified Superannuation) Bill 2006 and related bills.

[70]      Mr David Knox, Principal, Committee Hansard, 25 October 2006, Melbourne, p. 77.

[71]      Senator Andrew Murray, Committee Hansard, Melbourne, 25 October 2006, p. 81.

[72]      See, for example, Mr John Ward and Mr David Knox, Mercer Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, pp. 80-81.

[73]      Mr Alex Dunnin, Committee Hansard, 24 October 2006, Sydney, p. 88.

[74]      The Super Secret: How Multiple Accounts Cost Consumers Billions, A Choice Research Report, November 2006.

[75]      Dr Nicholas Coates, Senior Policy Officer, Choice, Committee Hansard, 7 March 2007, Sydney, p. 42.

[76]      Senate Select Committee on Superannuation, Draft Superannuation Industry (Supervision) Amendment Regulations 2003 and draft Retirement Savings Accounts Amendment Regulations 2003, September 2003, p. 86.

[77]      See, for example, Mr Graham McDonald, Chairperson, Superannuation Complaints Tribunal, Committee Hansard, 5 March 2007, Melbourne, p. 4.

[78]      Dr Nicholas Coates, Senior Policy Officer, Choice, Committee Hansard, 7 March 2007, Sydney, p. 42.

[79]      Mr Chris Legg, General Manager, Financial System Division, Treasury, Committee Hansard, Canberra, 20 November 2006, p. 23.

[80]      Australian Tax Office, 2005-06 Annual Report, p. 91.

[81]      The Association of Superannuation Funds of Australia Limited, Aggregate and individual costs of multiple superannuation accounts, February 2007, p. 22.

[82]      The Super Secret: How Multiple Accounts Cost Consumers Billions, A CHOICE Research Report, November 2006, pp.25-26, drawing on Eligible rollover fund disclosure campaign, Final Report, ASIC, January 2004.

[83]      APRA, Insight, 'Celebrating 10 years of superannuation data collection', Issue 2 2007, Table 1, p. 18.

[84]      APRA, Insight, 'Celebrating 10 years of superannuation data collection', Issue 2 2007, Table 1, p. 41. Figures are for entities with at least $100 million in assets.

[85]      ASIC, Report 84, 'Monitoring superannuation fees and costs', November 2006, p. 10. The figures ASIC reported assume a balance of $50,000 invested in the balanced option with $5,000 invested for the year.

[86]      IFF, Submission 73, p. 48.

[87]      The Super Secret: How Multiple Accounts Cost Consumers Billions, A CHOICE Research Report, November 2006, p. 27.

[88]      Mr Damian Hill, Chief Executive Officer, REST Superannuation, Committee Hansard, 24 October 2006, Sydney, p. 70.

[89]      Ms Raelene Vivian, Deputy Commissioner, ATO, Committee Hansard, 20 November 2006, Canberra, p. 41.

[90]      Ms Raelene Vivian, Deputy Commissioner, ATO, Committee Hansard, 20 November 2006, Canberra, pp. 46-7.

[91]      Mr Damian Hill, Chief Executive Officer, REST Superannuation, Committee Hansard, 24 October 2006, Sydney, p. 69.

[92]      'Tax Office to provide tax file numbers to super accounts', Press Release No. 063, 16 May 2007.

[93]      Ms Raelene Vivian, Deputy Commissioner, ATO, Committee Hansard, 20 November 2006, Canberra, p. 44.

[94]      Ms Raelene Vivian, Deputy Commissioner, ATO, Committee Hansard, 20 November 2006, Canberra, p. 51.

[95]      Mr Damian Hill, Chief Executive Officer, REST Superannuation, Committee Hansard, Sydney, 24 October 2006, p.68. A similar response was reported by Mercer Human Resource Consulting, Committee Hansard, Melbourne, 25 October 2006, p. 82.

Chapter 6 - The cost and accessibility of financial advice

[1]        Section 911A. Section 766A(1)(a) states that a financial service includes the provision of financial product advice.

[2]        See section 914A of the Corporations Act. ASIC's AFS licence conditions are outlined in Pro Forma 209 and include the following requirements: training for authorised representatives, various financial requirements, dispute resolution and retention of key documents.

[3]        The exemption only applies to accountants who are members of one of the three major accounting organisations. See ASIC, QFS 123, http://www.asic.gov.au/asic/asic.nsf/ASIC+FSR+FAQ+DisplayW?ReadForm&unid=1567F3AC0FAB85C4CA256F65001B317A, (accessed on 28 March 2007). 

[4]        ASIC, Policy Statement 175, 'Licensing: Financial product advisers – Conduct and disclosure', November 2005, p. 5.

[5]        ASIC, Policy Statement 175, 'Licensing: Financial product advisers – Conduct and disclosure', November 2005, p. 5.

[6]        Mr Mark Adams, Director Policy and Research, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 62.

[7]        This requirement applies to all financial product advice. Detailed information on FSG disclosure requirements is contained in ASIC's policy statement 175.

[8]        The SoA must also contain a number of other statements, qualifications and warnings. Further detail can be found in ASIC's policy statement 175, pp. 47-49. The most significant of these is the additional requirement under s947D to outline the costs and benefits of switching products, in part or whole, where this course of action has been recommended.

[9]        In February 2006 ASFA reported that changes in fund will often continue to be related to employment shifts or an employer's changed default fund arrangements, rather than due to Super Choice. It suggested that a conscious exercising of choice may occur when individuals change jobs and decide to remain in the old fund, when declines in investment returns provoke a shift, or simply when people find the time to change funds. See Ross Clare, The introduction of choice of superannuation fund – results to date, AFSA Research Centre, February 2006, p. 15.

[10]      Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 34.

[11]      Mr John Ward, Principal and Manager, Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, p. 73.

[12]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 12.

[13]      Promina Financial Services, Submission 37, p. 3

[14]      FPA, Submission 38, p. 6

[15]      Ms Jo-Anne Bloch, CEO, FPA, Committee Hansard, 24 October 2006, Sydney, p. 39.

[16]      Mr Michael Murphy, Past President, AFA, Committee Hansard, 20 November 2006, Canberra, p. 82.

[17]      Mr Michael Murphy, Past President, AFA, Committee Hansard, 20 November 2006, Canberra, p. 84.

[18]      Mr Anthony Beck, Head Workplace Business, Members Equity Bank, Committee Hansard, 25 October 2006, Melbourne, p. 31.

[19]      Mr Peter Mair, Submission 22, p. 2

[20]      Mr Frank Gullone, CEO, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 4.

[21]      Mr Paul Collins, Manager Legal Services, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 6.

[22]      Ms Catharine Bowtell, Industrial Officer, ACTU, Committee Hansard, 5 March 2007, Melbourne, p. 44.

[23]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 120.

[24]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 121.

[25]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 121. See also HOSTPLUS, Committee Hansard, 6 March 2007, Melbourne, pp. 60-61.

[26]      Mr Christopher Clausen, CEO, Health Super, Committee Hansard, 6 March 2007, Melbourne, p. 44. The long term high growth option is a 90-10 split.

[27]      Mr Christopher Clausen, CEO, Health Super, Committee Hansard, 6 March 2007, Melbourne, p. 45.

[28]      ABA, Submission 88, p. 12.

[29]      See for example Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, p. 74.

[30]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 13.

[31]      Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, pp. 74-75.

[32]      Mr John Ward, Principal and Manager, Mercer Human Resource Consulting, Committee Hansard, 25 October 2006, Melbourne, p. 72.

[33]      Bendigo Financial Planning, Submission 44, p. 1.

[34]      Bendigo Financial Planning, Submission 44, pp. 1-2.

[35]      Bendigo Financial Planning, Submission 44, p. 2

[36]      ASFA, Submission 68, p. 18.

[37]      Mr Damian Hill, CEO, REST, Committee Hansard, Sydney, 24 October 2006, p. 64.

[38]      REST Superannuation, Submission 54, 5.

[39]      Mr Gary Weaven, Spokesperson, Industry Super Network, Committee Hansard, Melbourne, 6 March 2007, p. 19.

[40]      ASFA, Submission 68, p. 20.

[41]      ASFA, Submission 68, p. 20.

[42]      ASIC, [PS 167] Licensing: Discretionary powers, January 2007, pp. 25-26.

[43]      Mr Richard Gilbert, CEO, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 100.

[44]      Mr Mark Cerche, Chairman, Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, p. 30.

[45]      Mr Mark Cerche, Chairman, Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, p. 32.

[46]      ABA, Submission 88, p. 14.

[47]      ASIC, Press release IR 05-32, 'ASIC provides relief and guidance for providers of superannuation calculators', 22 June 2005.

[48]      ASIC, Press release IR 05-32, 'ASIC provides relief and guidance for providers of superannuation calculators', 22 June 2005.

[49]      ASIC, [PS 167] Licensing: Discretionary powers, January 2007. [PS 167.50 – 167.83] of the policy statement fully outlines the conditions that apply to this regulatory relief.

[50]      CPA Australia, Submission 65, p. 4.

[51]      Ms Noelle Kelleher, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 45.

[52]      Ms Noelle Kelleher, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 40.

[53]      Mr Damian Hill, CEO, REST, Committee Hansard, 24 October 2006, Sydney, p. 64.

[54]      FPA, Submission 38, p. 12.        

[55]      ABA, Submission 88, p. 12.

[56]      ASFA, Submission 68, p. 18.

[57]      Dr Bradley Pragnell, Principal Policy Adviser, ASFA, Committee Hansard, 24 October 2006, Sydney, p. 21. 

[58]      Mr Geoff Fry, AON Financial Planning and Protection Ltd, Submission 17, p. 2

[59]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 13.

[60]      Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 13.

[61]      Ms Ann Byrne, CEO, UniSuper, Committee Hansard, 5 March 2007, Melbourne, p. 15.

[62]      See the committee's report on the bill, Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007 and related bills, June 2007.

[63]      Explanatory Memorandum, Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007, p. 20.

[64]      Explanatory Memorandum, Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007, p. 20.

[65]      For specific details and conditions see Treasury, Explanatory Information, 'Refinements to Financial Services Regulation: Draft Corporations Amendment Regulations', October 2005, p. 5 and pp. 20-21.

[66]      ASFA, Submission 68, p. 18.

[67]      Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, p. 32 and p. 38.

[68]      Ms Catharine Bowtell, Industrial Officer, ACTU, Committee Hansard, 5 March 2007, Melbourne, p. 45.

[69]      Mr Damian Hill, CEO, REST, Committee Hansard, 24 October 2006, Sydney, p. 66.

[70]      Ms Ann Byrne, CEO, UniSuper, Committee Hansard, 5 March 2007, Melbourne, p. 26.

[71]      Mercer, Submission 71, p. 9.

[72]      Ms Ann Byrne, CEO, UniSuper, Committee Hansard, 5 March 2007, Melbourne, p. 14.

[73]      Mr David Elia, CEO, HOSTPLUS, Committee Hansard, 6 March 2007, Melbourne, pp. 58-59.

[74]      Explanatory Memorandum, Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007, p. 21.

[75]      Mercer, Submission 71, p. 10.

[76]      ABA, Submission 88, p. 15.

[77]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 57.

[78]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 63.

[79]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 63.

[80]      Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 30.

[81]      Mr Graham McDonald, Chairperson, Superannuation Complaints Tribunal, Committee Hansard, 5 March 2007, Melbourne, p. 11.

[82]      Mr Robin Burns, CEO, Equipsuper, Committee Hansard, 25 October 2006, Melbourne, p. 112.

[83]      ICAA, Submission 43, pp. 3-4.

[84]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, pp. 57-58.

[85]      ICAA, Submission 43, p. 6.

[86]      IFF, Submission 73, p. 38.

[87]      Mr Hugh Elvy, Manager Financial Planning and Superannuation, ICAA, Committee Hansard, 7 March 2007, Sydney, p. 21.

[88]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 13.

[89]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 58.

[90]      Treasury, Information Package, 'Refinements to Financial Services Regulation', p. 4.

[91]      Mercer, Submission 71, p. 20.

[92]      IFF, Submission 73, p. 38.

[93]      Mr Paul Murphy, Executive Manager Marketing and Business Development, Unisuper, Committee Hansard, 5 March 2007, Melbourne, p. 20.

[94]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 122.

[95]      Mr Gary Weaven, Spokesperson, Industry Super Network, Committee Hansard, 6 March 2007, Melbourne, p. 19.

[96]      ASIC, Information release 05-19, 'ASIC provides answers on some fees and costs questions', 10 May 2005.

[97]      Mr Hugh Elvy, Manager Financial Planning and Superannuation, ICAA, Committee Hansard, 7 March 2007, Sydney, p. 20.

[98]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 58. See also evidence from Treasury, Committee Hansard, 20 November 2006, Canberra, p. 12.

[99]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, pp. 58-59.

Chapter 7 - Remuneration models for financial advice

[1]        ASIC, Policy Statement 175, 'Licensing: Financial product advisers – conduct and disclosure', November 2005, p. 37.

[2]        ASIC, Policy Statement 175, 'Licensing: Financial product advisers – conduct and disclosure', November 2005, p. 31.

[3]        ASIC, Policy Statement 175, 'Licensing: Financial product advisers – conduct and disclosure', November 2005, p. 32.

[4]        Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 70.

[5]        ASIC, Shadow shopping survey on superannuation advice, April 2006, p. 2.

[6]        HOSTPLUS, Submission 63, p. 7.

[7]        REST Superannuation, Submission 54, p. 5.

[8]        APRA, Superannuation Circular No. III.A.4, 'The sole purpose test', February 2001, paragraph 38.

[9]        APRA, Superannuation Circular No. III.A.4, 'The sole purpose test', February 2001, paragraphs 41 and 43.

[10]      ASIC, Consumer website, 'How commissions affect you', http://www.asic.gov.au/fido/fido.nsf/print/how+commissions+affect+you?opendocument, (accessed 19 April 2007).

[11]      Mr Mark Cerche, Chairman, Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, p. 33.

[12]      Industry Super Network, Submission 77, p. 8.

[13]      Assuming an average commission of 3% and industry average trail of 0.35%.

[14]      Choice, Submission 75, p. 4.

[15]      Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 31.

[16]      Superpartners, Submission 67, pp. 13-14.

[17]      Ms Jo-Anne Bloch, CEO, FPA, Committee Hansard, 24 October 2006, Sydney, p. 38.

[18]      Joint Committee on Corporations and Financial Services, Statutory Oversight of the Australian Securities and Investments Commission, August 2006, pp. 9-10.

[19]      Joint Committee on Corporations and Financial Services, Statutory Oversight of the Australian Securities and Investments Commission, August 2006, p. 10. 

[20]      Joint Committee on Corporations and Financial Services, Statutory Oversight of the Australian Securities and Investments Commission, March 2007, pp. 8-9.

[21]      Mr Frank Gullone, CEO, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 4.

[22]      Superpartners, Submission 67, p. 23.

[23]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 17.

[24]      CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 48.

[25]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, p. 81.

[26]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, p. 81.

[27]      AFA, Committee Hansard, 20 November 2006, Canberra, p. 81.

[28]      Fiducian Portfolio Services, Submission 18, p. 2.

[29]      Also referred to as platform fees this is a fee paid by product providers, in addition to commissions, to financial planning licensees to get their products on the approved product list.

[30]      Mr David Elia, CEO, HOSTPLUS, Committee Hansard, 6 March 2007, Melbourne, p. 59.

[31]      Mr Jeremy Cooper, Deputy Chairman, ASIC, Committee Hansard, 13 June 2006, Canberra, p. 13.

[32]      Mr Robin Burns, CEO, Equipsuper, Committee Hansard, 25 October 2006, Melbourne, p. 105.

[33]      Mr Jeremy Cooper, Deputy Chairman, ASIC, Committee Hansard, 13 June 2006, Canberra, p. 10.

[34]      Mr Alex Dunnin, Executive Director Editorial and Research, Rainmaker Information, Committee Hansard, 24 October 2006, Sydney, p. 80.

[35]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, p. 86.

[36]      Total Portfolio Management, Submission 31, p. 2.

[37]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 127.

[38]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, p. 19.

[39]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, p. 19.

[40]      ASIC, Discussion Paper, 'Managing conflicts of interest in the financial services industry', April 2006, p. 12.

[41]      Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 32.

[42]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, p. 88.

[43]      Mr Anthony Beck, Head Workplace Business, Members Equity Bank, Committee Hansard, 25 October 2006, Melbourne, p. 29.

[44]      Members Equity Bank, Committee Hansard, 25 October 2006, Melbourne, p. 30.

[45]      AFA, Committee Hansard, 20 November 2006, Canberra, p. 98.

[46]      ASIC, Policy Statement 181, 'Licensing: Managing conflicts of interest', August 2004, p. 19.

[47]      Mr Michael Murphy, Past President, AFA, Committee Hansard, 20 November 2006, Canberra, p. 98.

[48]      ASIC, Policy Statement 181, 'Licensing: Managing conflicts of interest', August 2004, p. 11.

[49]      ASIC, Policy Statement 181, 'Licensing: Managing conflicts of interest', August 2004,

pp. 14-15.

[50]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 61.

[51]      Members Equity Bank, Submission 64, p. 4.

[52]      AIST, Submission 79, p. 15.

[53]      Ms Fiona Reynolds, Director, AIST, Committee Hansard, 25 October 2006, Melbourne, p. 91.

[54]      Industry Super Network, Submission 77, p. 6.

[55]      IFF, Submission 73, p. 18.

[56]      SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 2.

[57]      Choice, Committee Hansard, 7 March 2007, Sydney, p. 36.

[58]      Superpartners, Submission 67, p. 23.

[59]      Mr Paul Watson, Executive Committee Member, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 128.

[60]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, pp. 80-81.

[61]      IFSA, Submission 60, p. 17.

[62]      FPA, Submission 38, p. 6.

[63]      Industry Super Network, Submission 77, p. 10.

[64]      IFSA, Submission 60, p. 17.

[65]      AXA Asia Pacific Holdings Ltd, Submission 45, p. 7.

[66]      Dr James Ritchie, National Chairman Retirees Income Research Group, AIR, Committee Hansard, 20 November 2006, Canberra, p. 106.

[67]      Dr James Ritchie, National Chairman Retirees Income Research Group, AIR, Committee Hansard, 20 November 2006, Canberra, p. 106.

[68]      ABA, Submission 88, p. 14.

[69]      ASIC, Discussion Paper, 'Managing conflicts of interest in the financial services industry', April 2006, p. 12.

[70]      Mr Richard Klipin, CEO, AFA, Committee Hansard, 20 November 2006, Canberra, p. 89.

[71]      AFA, Committee Hansard, 20 November 2006, Canberra, p. 89.

[72]      ASIC evidence at the committee's June 2006 oversight hearing, Committee Hansard, 13 June 2006, p. 23.

[73]      Ms Jo-Anne Bloch, CEO, FPA, Committee Hansard, 24 October 2006, Sydney, p. 43.

[74]      Mr Paul Collins, Manager Legal Services, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 9.

[75]      Count Financial Ltd, Submission 59, p. 3.

[76]      See, for example, discussion with Ms Jo-Anne Bloch, Financial Planning Association of Australia, Committee Hansard, 24 October 2006, Sydney, p. 53.

[77]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 16.

[78]      Mr Malcolm Rodgers, Executive Director Regulation, ASIC, Committee Hansard, 20 November 2006, Canberra, p. 64.

[79]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006.

[80]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006, p. 14.

[81]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006, p. 15.

[82]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006, pp. 17-18.

[83]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006, p. 22.

[84]      Mr David Love, Manager Investment Protection Unit, Corporations and Financial Services Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 17.

[85]      Treasury, Corporate and Financial Services Regulation Review: Proposals Paper, November 2006, p. 17.

[86]      Ms Jo-Anne Bloch, CEO, FPA, Committee Hansard, 24 October 2006, Sydney, p. 38.

[87]      Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 32.

[88]      Mr Gary Weaven, Spokesperson, Industry Super Network, Committee Hansard, 6 March 2007, Melbourne, p. 17.

[89]      Superpartners, Submission 67, p. 21.

[90]      Fiducian Portfolio Services, Submission 18, pp. 2-3.

[91]      IFSA, Submission 60, p. 19.

[92]      Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 118.

[93]      IFSA, Submission 60, p. 18.

[94]      RCSA and PASL, Submission 56, p. 7. See also MLC Ltd, Submission 83, p. 12.

[95]      IFF, Submission 73, p. 19.

[96]      Mr Robin Burns, CEO, Equipsuper, Committee Hansard, 25 October 2006, Melbourne, p. 102.

[97]      Mr Steve Tucker, CEO, MLC, Committee Hansard, 7 March 2007, Sydney, p. 83.

[98]      Sunsuper, Submission 74, pp. 10-11.

[99]      Mr Anthony Beck, Head Workplace Business, Members Equity Bank, Committee Hansard, 25 October 2006, Melbourne, p. 32.

[100]    Ms Susan Ryan, President, Board of Directors, AIST, Committee Hansard, 25 October 2006, Melbourne, p. 95.

[101]    IFF, Submission 73, pp. 18-19.

[102]    Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 15.

[103]    Mr Ian Silk, Convenor, IFF, Committee Hansard, 25 October 2006, Melbourne, p. 123.

[104]    Dr Nick Coates, Senior Policy Officer Superannuation and Financial Services, Choice, Committee Hansard, 7 March 2007, Sydney, p. 37.

[105]    Mr Frank Gullone, CEO, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 4.

[106]    Mr Anthony Beck, Head Workplace Business, Members' Equity Bank, Committee Hansard, 25 October 2006, Melbourne, p. 27.

[107]    Mr Richard Klipin, CEO, AFA, Committee Hansard, 20 November 2006, p. 97.

[108]    See for example REST, Committee Hansard, 24 October 2006, Sydney, pp. 57 and 64.

[109]    See for example Corporate Superannuation Association, Committee Hansard, 5 March 2007, Melbourne, pp. 30 and 32.

[110]    Mr Ross Clare, Principal Researcher, ASFA, Committee Hansard, 24 October 2006, Sydney, p. 33.

[111]    Ms Glenese Keavney, Superannuation Committee Member, FPA, Committee Hansard, 24 October 2006, Sydney, p. 46.

[112]    Mr Dennis Bateman, National President, AFA, Committee Hansard, 20 November 2006, p. 96.

[113]    Mr Richard Gilbert, CEO, IFSA, Committee Hansard, 24 October 2006, Sydney, p. 90.

[114]    Treasury, Understanding Money website, http://www.understandingmoney.gov.au/Content/Consumer/aboutUs.aspx, (accessed 1 May 2007).

[115]    ASIC, FIDO website, http://www.fido.asic.gov.au/fido/fido.nsf, (accessed 1 May 2007).

[116]    Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 3.

[117]    Mr Jeff Bresnahan, Managing Director, SuperRatings, Committee Hansard, 7 March 2007, Sydney, p. 13.

[118]    Mr Frank Gullone, CEO, Superpartners, Committee Hansard, 25 October 2006, Melbourne, p. 10.

[119]    Ms Philippa Smith, CEO, ASFA, Committee Hansard, 24 October 2006, Sydney, p. 30.

[120]    See: http://www.ato.gov.au/bettersuper/

Chapter 8 - Self-managed superannuation funds

[1]        Investment and Financial Services Association, Submission 60, p. 23.

[2]        Mrs Andrea Slattery, Chief Executive Officer, SPAA, Committee Hansard, Sydney, 24 October 2006, p. 4.

[3]        APRA figures included in SPAA, updated statistics, July 2007.

[4]        Self managed super funds – the Tax Office Perspective, Speech by Michael D'Ascenzo, Commissioner of Taxation, National SPAA Conference, 1 March 2006.

[5]        APRA figures included in SPAA, Submission 70a, p. 4.

[6]        APRA figures included in SPAA, updated statistics, July 2007, p. 4.

[7]        SPAA, updated statistics, July 2007, p. 5.

[8]        APRA figures included in SPAA, updated statistics, July 2007, p. 3.

[9]        Treasury, Submission 55, p. 16.

[10]      SuperRatings, Submission 49, p. 7.

[11]      Mr Graeme Colley, SPAA, Committee Hansard, Sydney, 24 October 2006, p. 5.

[12]      CPA Australia, Self Managed Super Funds, A Financial Advisory Services Research Report, October 2004, p. 2.

[13]      Association of Independent Retirees, Submission 19, p. 7.

[14]      SMSF Trends, Investment Trends/IFSA Self Managed Super Funds (SMSF) Report, February 2006, p. 11.

[15]      John Wasiliev, 'ATO warns on super fund risks', Australian Financial Review, 12 February 2007, pp. 1 and 56.

[16]      Tom Valentine, 'Regulation of DIY Superannuation Funds", The Australian Economic Review, vol.37, no.2, 2004, pp. 216-17.

[17]      Leslie Neilson, Superannuation ready reckoner: taxation and preservation rules for 2004-05-revised February 2005, Research Brief no.10 2004-05, Parliamentary Library, pp. 18-19.

[18]      Leslie Neilson, Superannuation ready reckoner: taxation and preservation rules for 2004-05-revised February 2005, Research Brief no.10 2004-05, Parliamentary Library, pp. 18-19.

[19]      Cavendish Superannuation, additional information, pp. 1-2. Central management and control test, s contained in S.295-95 of the Income Tax Assessment Act 1997.

[20]      Cavendish Superannuation, additional information, p. 2.

[21]      See, for example, Industry Funds Forum, Submission 73, p. 35.

[22]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, Sydney, 24 October 2006, p. 97.

[23]      Mrs Andrea Slattery, Chief Executive Officer, SPAA, Committee Hansard, Sydney, 24 October 2006, p. 4.

[24]      Mr Michael Davison, Superannuation Policy Adviser, CPA Australia, Committee Hansard, 25 October 2006, Melbourne, p. 50.

[25]      Mr Kevin Beasley, Chief Executive Officer, Professional Associations Superannuation Limited, Committee Hansard, 6 March 2007, Melbourne, p. 9.

[26]      Mr David Ruddiman, Director and Chair of Regulatory Committee, Committee Hansard, 24 October 2006, Sydney, p. 12.

[27]      Dr Barry Ritchie, National Chairman, Retirees Income Group, AIR, Committee Hansard, 20 November 2006, Canberra, p. 110. See also Mr Graeme Colley, Director, SPAA, Committee Hansard, 24 October 2006, Sydney, p. 7.

[28]      Mr David Ruddiman, Director and Chair of Regulatory Committee, SPAA, Committee Hansard, 24 October 2006, Sydney, p. 14.

[29]      Mr Graeme Colley, Director, SPAA, Committee Hansard, 24 October 2006, Sydney, p. 7.

[30]      Ms Erica Lejins, Senior Adviser, Superannuation and Retirement Savings Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 37.

[31]      Ms Erica Lejins, Senior Adviser, Superannuation and Retirment Savings Division, Treasury, Committee Hansard, 20 November 2006, Canberra, p. 37.

[32]      Dr James Ritchie, National Chairman, Retirees Income Research Group, AIR, Committee Hansard, 20 November 2006, Canberra, p. 111.

[33]      Mr Stuart Forsyth, Assistant Commissioner, Superannuation, ATO, Committee Hansard, 20 November 2006, Canberra, p. 39.

[34]      Ms Raelene Vivian, Deputy Commissioner, Superannuation, ATO, Committee Hansard, 20 November 2006, Canberra, p. 33.

[35]      Ms Raelene Vivian, Deputy Commissioner, Superannuation, ATO, Committee Hansard, 20 November 2006, Canberra, p. 35.

[36]      Ms Raelene Vivian, Deputy Commissioner, Superannuation, ATO, Committee Hansard, 20 November 2006, Canberra, p. 33.

[37]      Dr James Ritchie, National Chairman, Retirees Income Research Group, AIR, Committee Hansard, Canberra, 20 November 2006, p. 111.

[38]      Dr James Ritchie, National Chairman, Retirees Income Research Group, AIR, Committee Hansard, Canberra, 20 November 2006, p. 111.

[39]      AIR, Submission 19, p. 8.

[40]      Comprehensive background to the AFS, and in particular the accountants' exemption, can be found in this committee's report, Corporations Amendment Regulation 7.1.29A, 7.1.35A and 7.1.40(h), June 2004.

[41]      Ms Jo-Anne Bloch, Chief Executive Officer, FPA, Committee Hansard, 24 October 2006, Sydney, p. 42. See also Mr Michael Murphy, Past President, Association of Financial Advisers, Committee Hansard, 20 November 2006, Canberra, p. 91; Mr Steve Tucker, Chief Executive Officer, MLC, Committee Hansard, 7 March 2007, Sydney, p. 74.

[42]      IFSA, Submission 60, p. 24.

[43]      Mr Richard Gilbert, Chief Executive Officer, IFSA, Committee Hansard, Sydney, 24 October 2006, p. 97.

[44]      SPAA, Submission 70, p. 6.

[45]      Mr John Anning, Manager, Policy and Government Relations, FPA, Committee Hansard, 24 October 2006, Sydney, p. 42. See also Mr Hugh Elvy, Manager, Financial Planning and Superannuation, Institute of Chartered Accountants in Australia, Committee Hansard, 7 March 2007, Sydney, p. 25.

[46]      Mr Michael Davison, Superannuation Policy Adviser, CPA Australia, Committee Hansard, Sydney, 25 October 2006, p. 38.

[47]      Mr Michael Davison, Superannuation Policy Adviser, CPA Australia, Committee Hansard, Sydney, 25 October 2006, p. 42.

[48]      Parliamentary Joint Committee on Corporations and Financial Services, Corporations Amendment Regulation 7.1.29A, 7.1.35A and 7.1.40(h), June 2004.

[49]      Parliamentary Joint Committee on Corporations and Financial Services, Corporations Amendment Regulation 7.1.29A, 7.1.35A and 7.1.40(h), June 2004, p. 23.

[50]      Parliamentary Joint Committee on Corporations and Financial Services, Corporations Amendment Regulation 7.1.29A, 7.1.35A and 7.1.40(h), June 2004, p. 23.