YOUR MONEY, YOUR CHOICE LANDMARK AGREEMENT BETWEEN GOVERNMENT AND DEMOCRATS WILL LET INDIVIDUALS DECIDE WHO HAS THE RIGHT TO MANAGE THEIR MONEY Sydney, June 21, 2004: The Australian Bankers’ Association (ABA) says the landmark agreement between the Government and the Democrats announced today on superannuation choice means that all Australians will now be granted the right to decide who manages their superannuation money. David Bell, Chief Executive of the ABA, said: “With greater choice, employees will now be able to take greater ownership over their financial future. All Australians have a choice regarding many major financial decisions such as what shares in which they invest or, what house to buy, and now they will have the right to decide how their superannuation is managed.” “With greater choice, the financial services industry will become even more competitive, with employees now being able to change funds managers if they don’t meet their needs. This will put downward pressure on fees, increase the quality of services and raise performance benchmarks.” Choice legislation will be supplemented by two important supporting initiatives: A $14m education and awareness program, plus $2m for a consumer information centre, which will complement banks’ financial literacy programs. A simplified fee disclosure regime to be mandated by the Australian Securities and Investments Commission (ASIC) which will provide simplified information to make better choices. For further information: Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile: 0409 830 439 ENDS