FSC report warns of default super 'turmoil'

I know some banks might be on the nose at the moment and that their cross selling is quite efficient. But surely what David Whiteley meant to say was that he wants everyone out of the default super environment so that the industry funds can have open slather on everyone's super first before anyone else can get to it.

Now I would have thought that was just as much a conflict of interest as David alleges applies to the banks being able to cross sell to their business clients.

It is good to see that self interest again looks like winning out at the expense of the consumer.

Am I the only person in the room who sees Mr Murray as the boss of CBA when the first of the 400,000 clients started receiving their bad advice, and grew market share by 24% p.a. until he resigned years later; and now he's seen as the saviour of the superannuation industry... give me a break!

What a statement that some banks might be on the nose. The cross selling is not at all efficient for the member. What David Whitely and others acting in members best interest have always said is that when you look at choice and return associated with cost then some are better than others. No problem where the member expresses the choice.

Where the default argument lies is what is in the members best interest or perhaps the bank/employer best interest. I've been through it in the industry when I worked and clearly was never in the member best interest when given lower returns at higher cost and the employer was getting an offset on his banking business? Just remind who was the beneficiary there.

Funnily enough the bank tried it on one employer who listened carefully about the benefits he would get in return for signing his employees up to the bank superannuation scheme. Pity the representative from the bank didn't check that the employer was in fact the Fund Secretary for the Industry Superannuation Fund at that time.