ABA WELCOMES DRAFT SUPERANNUATION SAFETY LEGISLATION AND THE PORTABILITY REGULATIONS

Sydney, 5 June, 2003:  The Australian Bankers’ Association (ABA) hopes that customers will soon be able to manage their superannuation account balances in the same way that they now take for granted the choices they can make in banking products and services.
 
David Bell, Chief Executive of the ABA, said: “For consumers to enjoy portability of superannuation accounts depends on a bipartisan approach – in particular a recognition from the Australian Labor Party and the minor parties and independents in the Senate that these reforms are needed.”
 
Mr Bell also welcomed the draft legislation on superannuation safety because it will close the gaps in legislation, such as those that contributed to the risk of superannuation funds being lost, through theft, fraud or insolvency.  Appropriately, APRA will licence trustees and will foster proper governance and custodianship of these long term savings.
 
“Customers can arrange for regular deposits to their bank accounts, and can move their total balances from one bank to another as they choose,” Mr Bell said.
 
“Superannuation too could have these features – choice of fund for new contributions and portability for existing balances.”
 
“The ABA supports the changes noting that together they add to the security of long-term superannuation savings, while introducing greater competition.”
 
Mr Bell said that in principle the portability regulations give customers the choice to consolidate their multiple accounts, and to save on fees.
 
“The ABA supports impartial and independent consumer education, to assist customers to take informed and responsible decisions, and to weigh up the benefits of greater choice,” Mr Bell said.

The ABA looks forward to providing detailed comments on the draft superannuation safety legislation and the portability regulations.

For further information:
 
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
 
ENDS