“It concluded that the prevalence of unintended multiple accounts, pockets of entrenched underperformers and the sheer complexity of navigating the system has eroded member’s trust as well as their balances,” Ms Hume said.

“The financial services royal commission also uncovered some disturbing deficiencies in the conduct of some financial institutions.”

Ms Hume said the government has already passed the Protecting Your Super package and member outcome reforms, which are expected to address some of the deficiencies in the sector.

“The government has also committed to taking action on all 76 recommendations of the royal commission and in some cases has decided to go further. This includes 15 recommendations and one additional recommendation specifically for the superannuation industry,” she said.

“One of these is that members only have one default account to stop the proliferation of duplicate accounts, which is also consistent with the Productivity Commission’s recommendations.”

She also noted that Commissioner Hayne recommended clarifying ASIC and APRA’s regulatory roles and powers in superannuation.

“So far, we have enacted two recommendations of the royal commission relating to superannuation. We have also consulted with the industry on the merits of universal terms for insurance in MySuper products and progressed consultation with Aboriginal and Torres Strait Islanders on the difficulties they face when making binding death benefit nominations,” the commissioner said.

“The government is continuing to address the remaining recommendations and we’ll be consulting with the relevant regulators and, of course, industry participants this year.”  

She also stated that the government would be looking to establish an independent member advocacy body that represents members only, rather than the vested interests of the industry.

“In an industry that’s crowded with opinion makers, industry groups and lobbyists, it’s important that consumers themselves have a much stronger voice,” Ms Hume said.

“As such, the government has announced its intention to establish a superannuation consumer advocate, and we’ll be consulting on the scope of th[ose] advocates activities and how it will be funded.”

Ms Hume said there was also work to be done to ensure that retirees’ money continues to work hard during the retirement phase.

“Currently, there is very little guidance on how retirees should draw down their savings when they reach retirement,” she said.

“The government is addressing this by developing a retirement income framework which will include a covenant required for funds to develop a retirement income strategy for members.”