INDUSTRY SUPER funds MTAA Super and Tasplan have today finalised an unconditional agreement to merge on October 1, 2020.

MTAA Super oversees over $13 billion in retirement savings for workers in the motor trades and allied industries. Tasplan is a multi-industry not-for-profit fund managing $10 billion in assets. 

The merger will create a combined national super fund with more than $23 billion funds under management and approximately 335,000 members. 

The decision follows a comprehensive due diligence process ensuring both parties are satisfied the agreement is in the best interest of members of both funds.  

The combined fund’s corporate and trustee functions will be based in Canberra, with satellite offices in Tasmania and other locations, in recognition of the merger’s ‘best of breed’ approach.  MTAA Super’s administration services will be moved in-house to Tasplan’s Hobart facilities.

Fund Chairs, John Brumby of MTAA Super and Naomi Edwards of Tasplan, said the merger was driven by shared values and a desire to secure better member outcomes.

“Our organisations have a lot in common. We were both recently awarded Platinum status by SuperRatings as ‘best value for money’ funds, and we both have a strong focus on excellence. By combining our strengths, we are creating a multi-industry fund providing quality, customised service to members and employers across the country,” said Ms Edwards.

The combined fund’s scale will provide efficiencies that can be passed on to members through improvements to products and services, low fees and strong returns.

“Scale will help drive efficiencies and provide greater buying power,” said Mr Brumby. “This merger will enable us to negotiate top quartile investment management fees and take advantage of fee scale discounts. This means better value for money for our members.”

The merger comes as super funds face increased pressure to ensure they have sufficient scale to provide competitive products and services into the future. 

The Chairs believe the merger will achieve a significant capability uplift and place the fund in a highly competitive position both now and into the future.

“The current political and legislative landscape will likely mean an increase in super fund mergers over the next few years,” they agreed. “By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes.

Completion of the merger coincides with the conclusion of Mr Brumby’s final term as Chair of MTAA Super.  Mr Brumby said, “I’m very proud of what MTAA Super has achieved in my nine years as chair. We’ve built a robust, resilient and strongly performing fund through strong governance and risk management, improved investment performance and a proactive compliance regime. We’ve improved our services to members and employers, while also keeping downward pressure on fees and costs This merger is an important continuation of a journey we’ve been on for a while now. I have no doubt it will lead to positive retirement outcomes for members now and well into the future.” 

Ms Edwards, who has been chair of Tasplan since 2011, will stay on as chair of the new combined board. Having led Tasplan through several mergers which have seen the fund grow from $2.4 billion to just over $10 billion, she brings invaluable experience and leadership to the process. 

“I would like to acknowledge the extraordinary contribution of John to the success of MTAA Super over the last 9 years,” said Ms Edwards.” Under John’s chairmanship, MTAA Super has become a top quartile performer, year after year, as well as a highly regarded corporate player and contributor to the motor trades sector.  John will leave a very strong legacy when he retires next year and it will be a privilege to follow in his footsteps.”

On completion of the merger, Leeanne Turner, current CEO of MTAA Super, will assume the CEO role of the new fund to ensure continuity of leadership. Wayne Davy, current CEO of Tasplan Super, will continue in that role until merger completion date, working closely with Ms Turner to ensure a smooth transition.   

Ms Turner and Mr Davy said their focus will now be on making sure the transition is as smooth as possible for members and employers.

“We’ve got a bit of work to do to consolidate our systems and processes. We’re confident this can be done with minimal impact to members. At the end of the day members and employers can still expect to receive quality support and services face-to-face, over the phone and online. That will never change.”

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“THE REJECTION of the Ensuring Integrity Bill by some members of the Senate crossbench is a bitter blow for the building and construction industry,” Denita Wawn, CEO of Master Builders Australia said yesterday.

“Master Builders thanks those senators who defied construction union bullies and thugs to support the Bill and the rule of law.

“The thousands of small builders and tradies that are victims of construction union bullying will be gutted by this. They deserve an explanation from those senators that rejected the Bill about why they voted to let the bullies win,” Ms Wawn said. 

“The action of these senators will give the green light to construction unions and their officials to continue to bully, harass and coerce small business people to sign up to union deals and it’s our members and the community that will pay the price. 

“Master Builders will continue to fight for measures to combat the toxic culture of bullying in the construction unions,” Ms Wawn said. 

“Today’s vote is a setback, but we’re not going anywhere. Bullying is not tolerated in the community, and it should not be tolerated on construction sites.

www.masterbuilders.com.au

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INSTITUTE of Public Accountants (IPA) chief executive officer, Andrew Conway, set the scene at today’s opening of the IPA’s annual national congress in Adelaide today.

In his opening address to hundreds of accountant delegates, Prof. Conway made it clear where the IPA sits on many issues but also that of the profession.

“Today, we are focussed on four key factors to drive the profession forward through the decades to come,” Prof Conway said.

“Firstly, voice and a very public voice at that: We openly set discourse across many policy areas; not just for our members’ interests but that for the public interest and very much for the Australian economy.

“Together, the three professional accounting bodies, must have a single message to deliver these outcomes.  Australian citizens are facing an advice gap we have not seen before and we must arrest this situation," he said.

“Secondly, we must influence. Government is listening to our collective voices and we need to maintain the momentum to effect change.  We must continue to communicate to all stakeholders which importantly includes the 310,000-plus accountants and students who are members of the three bodies," Prof Conway said.

“Thirdly, we must demonstrate leadership within the profession.  There is no better time to be an accountant, considering the changing landscape and the challenge that presents.  We must provide guidance to accountants through the web of challenges ahead; technology, cyber security, regulatory reform, mental health and many more.

“We look forward to the decade ahead and the evolution of accountants and the profession,” Prof Conway said.

www.publicaccountants.org.au

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About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.

AT THE OPENING address at the Institute of Public Accountants (IPA) National Congress in Adelaide this week chief executive officer, Andrew Conway, said the regulatory burden on the nation was stifling productivity and growth.

“We know, we have to unshackle small business from the regulatory burden it faces if we are to address the ongoing productivity decline,” Professor Conway said.

“The SME sector is looking to accountants to hold that key to unlock that shackle. As a result, we are welcoming the whole of the profession to work in arms to support true regulatory reform; to remove the duplications, the costs and the administration burden on small business.

“Australia must have a new and innovative regulatory framework that removes duplication of effort, overlapping of responsibilities and hence, create an efficient and far more affordable model for stakeholders,” Prof. Conway said.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. 

www.publicaccountants.org.au

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THE Australian Prudential Regulation Authority (APRA) will appear before the House Economics Committee at a public hearing on Monday, December 2, 2019, as part of its review of the 2019 APRA Annual Report.

Chair, Tim Wilson MP, noted that "APRA appeared at a public hearing in August this year; however, the committee determined that additional information and questioning was required to properly scrutinise APRA".

"The hearing will provide the committee with the opportunity to further question APRA on its performance and operation and, in particular, how it is implementing the recommendations of the Hayne Royal Commission and the APRA capability review."

Mr Wilson said, "A common theme across the Royal Commission and capability review reports was that APRA is a strong regulator in the area of traditional financial risk, but that more work needs to be done to ensure APRA is prepared to respond to future challenges, particularly in relation to non-financial risk.

"The committee will scrutinise APRA on how it promotes financial stability through the prudential regulation and supervision of Authorised Deposit taking Institutions, insurers and superannuation licensees, and other related issues."

Public hearing details

Date: Monday, 2 December 2019
Time: 8am to 11am
Venue: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

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AN INQUIRY into supporting Australia’s export market is exporting the work of the Federal Parliament to Sydney, where it will hold a hearing on Friday.

Trade and Investment Growth Committee chair, George Christensen MP, said the Committee would hear from exporters in the advanced manufacturing, video games, sugar, wine, seafood, tourism, transport-related safety products and financial services sectors at the hearing.

‘From tourism to video games, Australia offers a staggering range of products and services to the world,’ Mr Christensen said.

‘We are looking forward to hearing from this huge range of industries and businesses about how the government can assist them to grow their export capabilities and attract investment.’

The inquiry, which focuses on attracting investment, identifying regulatory barriers and identifying best practice in the export market, was launched in August of this year. This will be the third public hearing to be held.

More information about the inquiry, including a full program for Friday’s public hearing, is available on the Committee’s webpage.

Public hearing details

Date: Friday, 29 November 2019
Time: 9am to 3.45pm
Location: Lodge Room 2, SMC Conference & Function Centre, 66 Goulburn St, Sydney

The hearing will be broadcast live at aph.gov.au/live.

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VISION SUPER has been named the winner of the inaugural Money Magazine award for Cheapest Superannuation Platform.

Money Magazine described the fund as a “standout when it comes to price”. The average industry fund charges more than double Vision Personal’s total management fee of 0.49 percent.

Vision Super chief executive officer Stephen Rowe said the result was pleasing, but not surprising.

“Our focus at Vision Super is always on the best interests of our members – and that includes a focus on keeping our costs low so members get more in their accounts,” Mr Rowe said.

“We started the Vision Personal–Sustainable balanced option to give people who wanted to invest sustainably a better option, at a much lower cost than similar retail fund offerings. It’s low cost, and it’s low carbon.

“Australians are getting a lot more informed and savvy about where their super is invested – particularly since the Royal Commission.

“Gone are the days when funds could sell members high-cost products – the choice market is growing, and Vision Super is out there offering a product that’s been recognised as the lowest cost in the country," Mr Rowe said.

“We also have a focus on strong risk-adjusted returns, and the results are exceptional – as at October 31, Vision Personal–Sustainable balanced has top quartile returns of 12.66 percent over one year, and above median returns of 9.36 percent over three years.

“Membership of Vision Personal has been growing strongly as a result –157.5 percent membership growth and 48.9 percent asset growth over the three years to June 30.

“Our members have joined us because we offer outstanding value and a sustainable approach – and we’re delighted that Money Magazine has recognised Vision Super’s value through this Gold award.”

www.visionsuper.com.au

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THE Financial Planning Association of Australia (FPA) has released a new discussion paper titled Evolution of Advice: The Financial Planning Profession from 2020 to 2025, and opened consultation on its proposed new pol icy platform.

The paper considers the major issues that will affect the profession over the next five years, including the affordability of advice, how financial planners interact with their clients, and the health of the profession.

FPA members will be asked to contribute their views over the next four weeks via the new FPA Community online forum, and their feedback will form the basis of the Association’s new policy initiatives for the next five years.

Dante De Gori CFP CEO of the FPA, said, “The FPA has a proud history of advocating for reforms that advance the financial planning profession, including education standards, ethics and professionalism.

“Back in 2014, the FPA released a landmark white paper on the future of the financial planning profession, providing a vision for elevating the profession and building consumer trust. In that paper, 10 key milestones were identified. The FPA’s advocacy since that time has resulted in nine of those 10 points being adopted – a proud achievement.

“Now we must look to the future and evolve our vision for the financial planning profession over the next five years. Feedback from members will underpin our policy and advocacy work so that we can promote new reforms that will benefit Australian consumers and financial planners alike.

“While the profession is going through a period of rapid change, Australians’ demand for high quality, independent and affordable financial advice remains undiminished. The FPA’s policy platform provides an opportunity for us to lead the conversation about the future of financial advice in this country and how we can better serve Australian consumers,” Mr De Gori said.

FPA members are encouraged to contribute their views by responding to a series of questions posed in FPA Community, which will be available in early December 2019.

The FPA is also presenting a webinar to its members on Tuesday December 3 at 1- 2pm AEST to walk through the details of the discussion paper including the current and emerging issues in financial planning and how these will be reflected in FPA’s new policy platform. The FPA expects to release its new policy platform in 2020.

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