Fed: Recommending financial products not govt's job: Hockey

AAP General News (Australia)
04-20-2010
Fed: Recommending financial products not govt's job: Hockey

SYDNEY, April 20 AAP - It's not the federal government's role to recommend financial
products, the opposition says.

The Cooper Review is expected to recommend every major Australian superannuation fund
be forced to offer a low-cost, low-service fund under an industry overhaul.

The government review, headed by former ASIC deputy chairman Jeremy Cooper, will urge
tighter regulations on retirement nest eggs.

It will propose super funds introduce a MySuper product that offers members no real
investment choice, limited flexibility and reduced levels of disclosure, but is aimed
at bringing down fees.

Shadow Treasurer Joe Hockey has told an Association of Financial Advisers seminar he
doesn't believe it's the commonwealth's role to define financial products.

"It can facilitate financial products, but it shouldn't get into the business of defining
financial products," he told the seminar in Sydney on Tuesday.

A report by the not-for-profit Industry Super Network found financial advisers reaped
$1.5 billion in fees in 2009 alone.

Asked how he would address excessive commissions, Mr Hockey says it's up to individuals
to work out whether they're paying too much in fees.

"I believe that individuals have to accept some personal responsibility for their superannuation,"

he said.

"And ultimately if they are paying too much in fees, one of the reasons why the Howard
government introduced choice to super was to enable them to change superannuation funds.

"And if you are not happy with the fees you are paying, change funds.

"If that formula is good enough from the government in relation to mortgages, why isn't
the formula good enough in relation to superannuation?"

The Cooper Review is due to deliver its final report to the government in June.

AAP bc/evt/mn

KEYWORD: SUPER HOCKEY

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