Economics Committee to hold urgent hearing with ME Bank and Industry Super Australia

THE House of Representatives Standing Committee on Economics will hear from ME Bank and Industry Super Australia at an urgent public hearing by videoconference on May 14, 2020, as part of its ongoing review of the four major banks and other financial institutions.

The chair of the committee, Tim Wilson MP, said, "Australians who put their savings into the bank or entrust it with a superannuation fund rightly expect it to be secure.

"The conduct of ME Bank has raised urgent questions about the security and flexibility of the savings of Australians with their mortgage products and necessitates scrutiny," Mr Wilson said. 

"Australians trust superannuation funds with significant savings, they hold a fair expectation that funds will provide accurate information and will act promptly if they are eligible for early withdrawal. The conduct of Industry Super Australia in publishing dubious calculations about the impacts of early withdrawal will be examined, as will processes to stop fraud," Mr Wilson said.

"Members' equity should be paramount, and concerns about liquidity also need to be answered. It was only in November last year that the sector dismissed this committee’s concerns about liquidity prompted by substantial investments by funds in illiquid assets," Mr Wilson said.

"As the superannuation system is a significant mechanism enabling Australians to support themselves in retirement, it is crucial that the superannuation sector is operating effectively, fairly and for the benefit of fund members.

"The COVID-19 pandemic has also raised a number of issues, including how banks and the superannuation sector are supporting affected customers and members," Mr Wilson said.

Public hearing details 

Date: Thursday, 14 May 2020
Time: 9.30am to 12.30pm
Location: Videoconference

9.30am – Industry Super Australia
10.50am – Break
11.00am – ME Bank
12.30pm – Finish

The hearings will be webcast at aph.gov.au/live.

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