Australia’s peak union body is calling for industry superannuation funds to review default arrangements with “dodgy banks” in the wake of scandals uncovered by the financial services royal commission.
Australian Council of Trade Unions secretary Sally McManus has written to chief executives of industry super funds asking them to reconsider their commercial relationships with financial institutions following the “corrupt and unethical behaviours” revealed in the royal commission.
“In light of the revelations of the past weeks at the Banking Royal Commission, I am asking Industry super fund CEOs to reconsider their commercial relationships with banks,” Ms McManus said in a statement on Tuesday.
“The retirement savings of working people should not be used to prop organisations that house rotten, corrupt and unethical behaviours like those revealed over the past weeks at the Banking Royal Commission.”
In the letter sent to fund bosses, Ms McManus said she has been appalled by the “outrageous and illegal behaviour” revealed in the royal commission which has included charging dead people for non-existent financial advice and ignoring and covering up fraud.
On Monday, the royal commission heard National Australia Bank financial planners impersonated customers, forged their signatures and withdrew money from their accounts.
The royal commission has also previously heard some Commonwealth Bank of Australia financial advisers continued charging clients fees after they died, in one case for more than a decade.
The call for a review comes after the postal and telecommunications union last week co-signed a letter to Australia Post chief executive Christine Holgate asking her to review the company’s use of an AMP default super fund and urging members to seek urgent financial advice regarding AMP superannuation.
Last week, AMP admitted it had charged customers fees for financial advice that was never delivered, and also repeatedly lied about its behaviour to the Australian Securities and Investments Commission (ASIC).