FORMER Macquarie Group chief executive Allan Moss has weighed into the debate over Australia's $1.4 trillion retirement savings system, saying the superannuation industry's credibility has been damaged by perceptions it has a conflict of interest.
Mr Moss, who ran the "millionaires factory" for 15 years, said superannuation customers had become increasingly fearful, after years of volatility and the marketing of unsuitable investment products.
For the industry to regain customers' trust, there needed to be an independent voice to represent investors in debates on superannuation policy, he said.
"The industry is often perceived as having conflicts of interest," Mr Moss told BusinessDay.
"It's often perceived as, quite naturally, having to act in the interests of shareholders as well as investors. So I think that the industry doesn't always have the appropriate credibility with government, and with the public and sometimes even with regulators."
Mr Moss left Macquarie in 2008 with a fortune worth more than $80 million at the time, and has rarely made public comments on the financial system in recent years.
He is now helping the federal government set up an independent body to represent consumers' interests in the complex and often divisive policy debates on superannuation. Other prominent figures involved in the project include former Victorian Premier Steve Bracks, former corporate regulator Tony D'Aloisio, and Choice chairwoman Jenni Mack.
Mr Moss said the initiative, which aims to help consumers navigate the complex world of retirement products, was in the industry's interest.
"Getting a good outcome for investors is not only about producing good financial results . . . It's also about people having confidence in the system, it's about people sleeping at night, and I think there's a lot of fear among investors," Mr Moss said.
"There's a lot of people who feel quite uncertain about investment and particularly about superannuation, and I think they'll feel better if they know there's somebody in their corner who's part of a dialogue with government, who's looking out for them."
Though he would not comment on the behaviour of specific firms, Mr Moss said the financial industry had provided some "inappropriate" retirement products in recent years.
"I think there are some products that, frankly, might be fine for me, that might not be fine for everybody in the community," he said.
It is hoped the Superannuation Consumer Centre which has received $10 million from government and is seeking matching private-sector funding can address the gap identified by Mr Moss. The centre aims to fund its ongoing research and advocacy role through investment earnings.
After retirees lost millions in high-profile collapses such as Trio Capital and Storm Financial, Ms Mack said a key focus of the centre would be the "retirement risk zone" the five years leading up to and following retirement.
"We think that period is going to be a potential honey pot for fringe players, for fraud and for scams just because the amount of money is so large and the consumers are so vulnerable," Ms Mack said.
With PETER MARTIN
Frequently Asked Questions about this Article…
Why has the superannuation industry's credibility been damaged?
According to former Macquarie CEO Allan Moss, the industry’s credibility has been hurt by perceptions of conflicts of interest, years of market volatility and the marketing of unsuitable retirement products. He says many customers have become fearful and uncertain about whether funds are acting in investors’ best interests or shareholders’ interests.
What is the Superannuation Consumer Centre and what will it do for investors?
The Superannuation Consumer Centre is an independent consumer body being set up to represent everyday investors in debates about superannuation policy. It aims to help consumers navigate complex retirement products, provide research and advocacy, and be a voice in dialogue with government to improve outcomes and confidence for superannuation savers.
Who is Allan Moss and why is his involvement important for superannuation reform?
Allan Moss is the former chief executive of Macquarie Group who led the firm for 15 years. He’s now helping the federal government set up the independent consumer body. His involvement matters because he’s a high-profile industry figure and his support highlights a push for an independent voice to rebuild trust in the retirement system.
How will the Superannuation Consumer Centre be funded?
The centre has received $10 million from the government and is seeking matching private‑sector funding. It also plans to fund ongoing research and advocacy through investment earnings, rather than relying solely on recurrent public money.
What is the 'retirement risk zone' and why should investors pay attention to it?
The 'retirement risk zone' refers to the five years before and after retirement. The centre warns this period is especially risky because retirees hold large sums and can be vulnerable to fringe players, fraud and scams. Everyday investors should be extra cautious with product choices during this time.
Will the new consumer body influence government policy on superannuation?
Yes. One of the centre’s aims is to provide an independent voice for consumers in policy debates. Allan Moss and other prominent figures involved hope the centre will participate in dialogue with government to ensure investors’ interests are represented.
Did Allan Moss single out any firms or products as problematic?
Mr Moss would not comment on specific firms. He did say, however, that the financial industry has provided some 'inappropriate' retirement products in recent years—products that might suit some people but not be suitable for the wider community.
How could the Superannuation Consumer Centre benefit everyday investors?
The centre aims to boost investor confidence by offering independent research, advocacy and a consumer perspective in policy debates. For everyday investors this could mean clearer guidance on retirement products, better protection during the risky retirement period, and someone 'in your corner' when navigating complex decisions.
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