This page provides a central respository of information on and for the Murray (FSI) Inquiry. The information on this page will be updated periodically as appropriate.
Please click the links to read the FSC statement and final FSC submission to Treasury in relation to the FSI.
PHASE TWO DOCUMENTATION
FSI submission to Phase Two:
Please click here to download the entire FSC submission to the Financial System Inquiry.
Research supporting Phase Two chapters:
Phase Two, Chapter 2
Phase Two, Chapter 4
PHASE ONE DOCUMENTATION
FSC initial summary on draft report issued 15 July 2014
Click here to read the FSC's initial summary on the FSI Draft Report.
FSI submission chapters on:
1. Superannuation;(uploaded 2 April 2014)
2. Financial System Users; (uploaded 8 April 2014 - see below for research)
3. Regulatory Architecture;
4. Federal Budget Sustainability; and
5. Global Competitiveness.
To download the entire submission please click here.
Please visit this page periodically to check for updates.
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FSC research supporting Phase One
Mercer report Asset Allocations of Pension Funds Around the World.
The Mercer report compares the asset allocation of pension funds on a global basis – it demonstrates that Australian superannuation funds do not diverge from comparable pension systems.
For instance – when considering four of the five largest pension systems in the world − Canada, the USA, UK and Australia – they each invest 35 to 50 per cent of their assets in equities.
Professor Rodney Maddock report Superannuation asset allocations and growth projections.
Maddock’s paper examines superannuation capital flows. The paper shows that superannuation is adding to national savings and that it will reduce our dependence on net foreign capital inflows.
It also demonstrates:
- A large amount of superannuation assets are rerouted to the banking system. This occurs through equity and fixed income investments and cash holdings. For example, the superannuation sector had $215 billion in deposits at banks by September 2013. That constitutes 14.2 per cent of the funds in the superannuation system. Superannuation funds also hold 25% of bank equity.
- As superannuation grows, demand for domestic non-listed equity increases. This demand is likely to drive the supply of securitised assets thereby providing alternative funding for mortgages.
- Superannuation funds will also seek alternative assets to take advantage of their status as long term, patient investors.
Research supporting Chapter 2 - Financial System Users
Research supporting Chapter 4 - Federal Budget Sustainability
Research supporting Chapter 5 - Global Competitiveness
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