Bank royal commission: superannuation feeding frenzy exposed

WHEN it comes to our superannuation, the big banks just loved that giant $2.7 trillion honey pot. It turns out they have also had their heads stuck in it, writes Karina Barrymore.

The banks just couldn’t get enough of our super honey pot.

PIGLET: “How do you spell ‘love’?”

Winnie-the-Pooh: “You don’t spell it … you feel it.”

There was no love being felt at the financial services royal commission this week as the theft and misuse of our superannuation money was on display for all to see.

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Some of those giving evidence during the latest hearings seemed brazenly smart-arsed, deliberately unhelpful and, worst of all, arrogant and resentful of even being questioned in the first place.

Underlying these stilted witnesses, however, were signs of love — the love of Winnie-the-Pooh’s other great desire, the honey pot.

It was clear from the latest royal commission snapshot that Australian fund managers have their hands (and heads) well and truly stuck in our $2.7 trillion dollar superannuation honey pot.

This feeding frenzy on our government-enforced compulsory savings has helped sicken a whole financial sector.

For decades it appears fund managers have been in a virtual free-for-all, charging as much as they like, brushing off complaints, obscuring details and wheedling their way around regulators who have been too under-resourced and star struck to do their jobs properly.

Yes, Australia could have a good superannuation system.

Compulsory savings, instead of wage rises, could create a huge self-supporting income base for every worker.

However, the way it has been pilfered demonstrates the greed of these fat-cat super fund managers.

Their tastebuds and financial empires have become addicted to the endless supply of super fund honey.

It’s dripping off the fingers, pouring down their faces and it’s getting into their eyes.

They have lost sight of right and wrong in their constant chase for more money and power.

And we all know what power does.

It corrupts.

As we learned this week, even when it’s in the best interest of super fund members, power-hungry trustees and fund managers still put themselves first.

As we say goodbye to Commissioner Hayne for a few weeks before the next round of hearings into insurance companies, I’d like to raise another massive financial threat that involves power.

Power, as in energy and power as in monopolies.

If only the royal commission could go on and on, then perhaps it could also tackle all these other rip-off, fee-for-no-service providers — utility companies.

Their unfair charges and dishonest discounting is having a crippling financial impact on Australian households.

If ever there was a need for another royal commission it is to examine Australia’s disastrous gas, electricity, water and telecommunications sectors.

Soaring prices, bad service, no redress and no choice are the hallmark of our utility providers and, as with the banks, the government is hell bent on avoiding the issue, offering excuses and turning a blind eye.

These are not optional services, they are essential, compulsory purchases for 99 per cent of the population.

Yet we are left to fend for ourselves and put up with the constant price gouging.

While bad financial advice, rip-off interest rates, dishonesty and the profit-at-any-cost of our major financial institutions have taken a horrendous toll on our personal finances, the misconduct of these essential service providers is equally shameful and damaging to our wellbeing and the wider economy.

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