SENIORS have welcomed stronger consumer protections announced as part of the Federal Government's long-awaited response to the Financial Systems Inquiry.
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Council on the Ageing chief executive Ian Yates said legislation to ban merchants from imposing unfair credit card surcharges of up to 10 per cent was good news for consumers.
He welcomed the government's agreement to legislate the objective of superannuation into legislation, to review the efficiency and effectiveness of the superannuation system and to support the development of comprehensive retirement income products.
The Productivity Commission will also immediately start work on a formal competitive superannuation process for the allocation of default superannuation funds.
"However the detail of improvement to superannuation and other retirement income measures is missing," Mr Yates said.
"We await the release of the also long-awaited Retirement Income Streams Review and the Tax White Paper process's options paper."
He said seniors would benefit from stronger controls on financial advisers and planners including raising their professional and educational standards and having them overseen by an independent statutory body.
"We also warmly welcome the government's agreement to legislate to make issuers and distributors of financial products accountable for products and services performing in the way consumers are led to expect, and to give ASIC the power to intervene to modify or ban harmful products that risk significant consumer detriment.
"Overall the government's FSI response heads in the right direction but there is a long way to go with further consultation, reviews and decisions to be made."
National Seniors chief executive Michael O'Neill said the endorsement of the Murray Inquiry's recommendations provided a strong foundation for consumer confidence.
He said increasing pressure on the superannuation sector to reduce costs and improve returns was among welcome moves.
However reforms would need to be properly overseen.
"Particularly in the area of superannuation it will be important for all interests - from the political to the industry - to put aside self-interest and focus on the key outcome of ensuring better retirement income outcomes for individual people."
