A speech by Jeffrey Lucy AM, ASIC Chairman to the Association of Superannuation Funds of Australia, 6 September 2006.
Introductory comments
- The superannuation industry has become a permanent and essential feature of the Australian financial system.
- The compulsory superannuation savings scheme introduced in 1992 has been a key contributor to superannuation funds now dominating the Australian managed funds industry with a market share of 53% and accounting for more than 70% of Australian managed funds.
- With the Australian Government's clear ambition to simplify and streamline superannuation, the industry will, no doubt, continue to grow rapidly.
- This has been again demonstrated within the last 24 hours with the Treasurer, the Hon Peter Costello MP's, statements yesterday about superannuation reforms.
- Of course, many Australians are also keenly turning their minds towards the issue of how they are going to fund their own retirement given the introduction of compulsory superannuation savings, financial services reform and superannuation choice, together with the increasingly favourable tax treatment of superannuation.
- As representatives of the superannuation industry, your responsibility for the retirement savings of millions of Australians cannot be underestimated.
- Now, more than ever before, consumers must have confidence in the market in which they are investing and must be in a position to make informed decisions about what to invest in.
- Of course, further regulation has kept pace with the industry's developments throughout this period.
- Working through these regulatory requirements has not been without its challenges, from both our perspectives.