Banking Royal Commission

Discussion in 'Four Corners' started by The Vaulting Violinist, Feb 13, 2018.

  1. The Vaulting Violinist

    The Vaulting Violinist Juniors

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    It’s an early favourite for the topic that’ll receive the most media attention in 2018 so deserves a topic. A few questions for you enlightened folk:

    - Do you care
    - On what basis do you care
    - Do you think anything of note will change or were the outcomes predetermined
    - Do you think the placement of Kenneth was a stooge placement
    - What would you realistically like to change
    - What’s the likelihood of the commission recommending a dismantling of the Four Pillars

    I’ll start with one - bank backed super funds have been getting away with sticking cash investments in low rate return products for years. This is absolute bullshit and they should be mandated to pay at least market rates (FYI I currently get 1.3%)
     
  2. B-dos

    B-dos Referee

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    thats the market rate for at call money

    cant you request your fund to invest your money how you like - ie take on greater risk for higher returns?
     
  3. I Bleed Maroon

    I Bleed Maroon Coach

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    Yes I care. If there is a system of corruption surrounding mortgages going on here like there was in America before 2008, I want to know about it.
     
  4. The Vaulting Violinist

    The Vaulting Violinist Juniors

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    Like a TD that pays ~2.4% at the moment?

    How is my money at call? It’s in a super fund
     
  5. B-dos

    B-dos Referee

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    i think its a bit more complex than that VV

    the fund doesnt have a bank account set up in your name. and it doesnt lodge a new TD every month when your employer pays a tad more into your fund

    SMSFs are very heavily regulated and funds would have to keep a certain amount of cash at call for withdrawals by other fund members. im not an expert on every fund but i guess in relation to your comment they could probably offer an investment option that is not at call (if they dont already)

    that said, i dont tihnk this is the purpose of the royal commission is it? if you want to better manage your super you might be better off establishing an SMSF?
     
  6. Surely

    Surely Moderator Staff Member

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    the bank super fund could have put it into an ing account and done better than 1.3% for him.
     
  7. 2_Smoking_Guns

    2_Smoking_Guns First Grade

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    The banks first and foremost have a responsibility to their shareholders and so the bulk of the returns on super investments are siphoned off in outrageous fees. The pitiful returns to members and their attempts to get an even greater share of super funds should definitely be investigated. Fees charged for terrible financial advice should be reimbursed to members .
     
  8. Smack

    Smack First Grade

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    Must take CPI into account also. It stands at 1.9% So you are actually at a loss.
     
  9. Parra

    Parra Coach

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    WOFTAM
     
  10. Jimbo

    Jimbo Immortal

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    As a union hack I'm sure it's probably part of your job description to push industry funds as they are run by unionists

    But your understanding of the fee structures of superannuation funds seems rather limited
     
  11. Parra

    Parra Coach

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    And fees charged for awesome advice should also scale?

    Would you want your super fund to own shares in the big banks? Does your fund own shares in the big banks?
     
  12. Bandwagon

    Bandwagon Moderator Staff Member

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    I think our banking and financial sectors are fairly well regulated and I don't see a great need for further regulation, what I do see the need for better policing of the existing regulations, and greater penalties for breaking them.

    The most important thing this RC can do for mine is expose the practices that exist outside of the regulatory framework and make recommendations as to how the financial incentives to do so can be removed or nullified.
     
  13. Bandwagon

    Bandwagon Moderator Staff Member

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    I bet it burns these nasty union funds continuously produce better results for their members than the major institutions do,

    Lolz.
     
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  14. The Vaulting Violinist

    The Vaulting Violinist Juniors

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    Yeh that’s a fair call. Plenty goes through to the keeper in the current model because enforcement agencies are too gun shy/lazy/underresourced
     
  15. Diesel

    Diesel First Grade

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    Expand the terms of reference. At this rate there’s not going to be much that comes out of this talkfest
     
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  16. Parra

    Parra Coach

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    Do you really think an RC is necessary for that?
     
  17. Bandwagon

    Bandwagon Moderator Staff Member

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    Necessary? Maybe not.

    Desirable.

    Definitely.
     
  18. Parra

    Parra Coach

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    It seems more of a political requirement than a legal requirement.

    RC's have been reduced to just another marketing tool.
     
  19. Bandwagon

    Bandwagon Moderator Staff Member

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    There is an element of that, though would you make the claim of the RC into institutional child abuse?

    I certainly wouldn't go there on that one, where as I would on the union one, which funnily enough has a great deal of partisan support / condemnation.

    That the government has had to be dragged into this, and it is of course the government that sets the agenda for the RC doesn't bode particularly well for the process or the outcome, however that in and of it's self is not an argument against holding an RC, though it is I concede an argument as to the worth of this particular RC.
     
  20. B-dos

    B-dos Referee

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    the fact that the banks got together and asked for it really does indicate how valuable its likely to be

    and yet we have many in the public hoping for dramatic revelations and huge changes that will benefit everyone

    its most likely going to be just one big waste of money
     
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