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A response to ASIC's warning to poor superannuation funds

"Super funds are potentially breaking the law"

Quotes attributable to Xavier O’Halloran, Head of Advocacy and Campaigns, Superannuation Consumers' Centre at CHOICE.

"Super funds are potentially breaking the law to keep hitting people with duplicate zombie fees and insurance. This is a disgraceful act of self interest. We call on all super funds to heed ASIC's warning today. Misleading people about their insurance needs and the value of consolidating their accounts is not on. The newly formed Superannuation Consumers' Centre will be paying close attention to how funds tell their members about changes to the law and report those that fall short."

"The 'Protecting Your Super Package' legislation was introduced to protect people's retirement savings from erosion due to 'zombie' fees and insurance. For some funds to try and keep the fee gouge running by misleading people into acting against their own interests is not only galling, but it's against the law."

"If people want free and independent information about their insurance needs and the value of consolidating multiple accounts they can go to ASIC's MoneySmart website or the CHOICE website."

Media contact: 0430 172 669 media@choice.com.au

Background

The legislation to address this problem of account erosion due to duplicate fees and insurance policies came off the back of a Productivity Commission finding that:

"Not all members get value out of insurance in super. Many see their retirement balances eroded – often by over $50,000 – by duplicate or unsuitable (even 'zombie') policies."

Further help for Australians is available on the CHOICE website. 

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