David Murray

Investment Strategy

FSI’s backing of independent trustees “unenthusiastic”

The Financial System Inquiry’s recommendation that APRA-regulated superannuation funds should have a majority of independent trustees has been branded “unenthusiastic” by Industry Super Australia. Notably the section of the report containing the recommendation, which also calls for all chairs to be independents and for an arm’s length definition of independence to apply, starts out with […]
Investment Strategy

The FSIs seven recommendations for super

The Financial System Inquiry has made seven recommendations in its final report to government with direct reference to superannuation. All of these plus one observation on taxation (which was outside the scope of its inquiry) are listed below. In reviewing the report yesterday, Pauline Vamos, chief executive of the Association of Superannuation Funds of  Australia […]
Policy and Regulation

Banks and industry funds unite against FSI proposals

“It is clear…. that the banking system is considerably less competitive than the superannuation system, is systemically more risky and extracts a greater cost from the overall economy.” This extract from a submission sent by Greg Cooper, managing director of Schroder Investment Management Australia to the Financial System Inquiry, is perhaps the most damning put-down […]
Industry View

AIST view: product disclosure is not working

One of the key themes to emerge from the Financial System Inquiry interim report is that product disclosure – both in banking and superannuation – isn’t working. Few in the superannuation industry would disagree. All of us are acutely aware that very few super fund members read the fine print and – frankly – who […]
Investment Strategy

David Murray profile: superannuation put on trial

How worried should the superannuation industry be by the contents of the Financial System Inquiry’s interim report? The comments made by David Murray in the interview, the day after the report was published, reveal an entirely unsentimental view of the industry. The report is critical of the worth of active management, the general level of […]

Burden of proof lies with funds over fees

David Murray told me it was “clear” the return from active managers is not worth the extra cost when talking to me the day after the release of the Financial System Inquiry interim report two weeks ago. This is a bold statement when applied to superannuation funds, the best of whom have a reputation for […]
Policy and Regulation

Murray offers no quick fix on retirement income

The removal of impediments to the creation of retirement income products should not go ahead until there is greater consensus on what purpose the superannuation system serves, David Murray has revealed. In talks with Investment Magazine at the offices of Australian Securities and Investment Commission in Sydney, the day after the release of the interim […]