Broadly the Financial System Inquiry has been well received by industry, with some exceptions. The large banks can be expected to continue to campaign against higher capital requirements, industry super funds oppose the governance recommendations, and some will object to banning SMSF borrowing.
The Financial Services Council (FSC) supports the extension of super choice to all employees. “The FSI strongly endorses the principal of a consumers’ right to choose their superannuation fund. This must be a foundation of superannuation in compulsory system,” said FSC CEO John Brogden.
Unsurprisingly the FSC also supports the super fund governance recommendation. “Superannuation Boards must be independent and free of vested interests from unions and other bodies. We strongly support the recommendation to require public offer superannuation funds to have a majority of independent directors and an independent chair,” said Mr Brogden.