The Productivity Commission has failed to recommend an open, transparent and competitive superannuation system, according to the Financial Services Council (FSC).

“This report is a bitter disappointment and a missed opportunity,” chief executive of the Financial Services Council, John Brogden said.

“Default superannuation will remain the domain of the industrial system. Twenty years on, nothing will change.

“The Productivity Commission has failed to recognise that superannuation is not an industrial matter.

“Superannuation is a financial product and should not be adjudicated by Fair Work Australia,” Brogden added.

The FSC’s view is that the Productivity Commission’s final report into default superannuation funds in Modern Awards ignores the MySuper reforms with their robust consumer protections and suggests MySuper is inadequate.

“Further, it will be 10 years before a review undertaken to assess the viability of allowing employers to select any MySuper product as a default fund,” said Brogden.

“Default super will remain uncompetitive, conflicted and without transparency.”

Brogden believes the final report has significantly departed from its draft report in June which proposed a new market structure for default superannuation and permitted an employer to select any MySuper product as a default fund.