As pressure grows on super funds to cut fees, Mr Silk on Tuesday warned there was a risk that savings from the funds becoming more efficient were not being passed on to members. "The biggest concern as the superannuation sector grows is that the financial benefits from the economies of scale are being captured by the agents and not ordinary Australians," Mr Silk said. "Too many people are looking to clip the ticket here and clip the ticket there as the money washes through the industry rather than put the interests of members first.
But the chief executive of Industry Super Australia, David Whiteley, said the lobby group’s submission to Mr Murray will urge the panel to protect the default fund "safety net" - a policy to ensure people who do not make an active choice do not pay excessive fees. "Our concern is that the banks are now pushing to use their vertically integrated market power to leverage business banking relationships to sell default funds," Mr Whiteley said.
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