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Super Funds Under Fire: The Industry Without a Code of Conduct
The superannuation sector, managing billions of Australians’ retirement savings, remains notably absent from the list of industries subscribing to a code of conduct. Unlike banks, insurance companies, and supermarkets, super funds operate without binding ethical standards, raising questions about transparency and accountability.
A Code Abandoned
In 2021, the sector replaced its voluntary, non-binding code with unenforceable guidelines, a move that flew under the radar. This decision has left the industry unaccountable amid its rapid growth and increased scrutiny.
Regulators Turn Up the Heat
The Australian Securities and Investments Commission (ASIC) has launched investigations into all super funds, hinting at further court actions. The Reserve Bank of Australia (RBA) has also flagged the growing sector as a potential risk to financial stability.
"The sector's rapid growth and increased exposure to margin calls mean its investment decisions could amplify shocks in the financial system," warned the RBA.
Misuse of Members’ Money
Critics, including retired barrister and superannuation expert Noel Davis, allege that super trustees have long breached trustee duties. Funds are accused of spending over $400 million annually on sponsorships, advertising, and promotions—expenditures that may not align with members' best interests.
A Call for Accountability
As the superannuation sector continues to expand, the absence of a binding code leaves members vulnerable to poor governance. With regulators intensifying scrutiny, it’s time for the industry to prioritise transparency and regain public trust.
The Supavest Solution
For those looking for a change they can trust, have you considered investing your super and growing your retirement savings by investing in property?
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