Axa expects Virgin Money’s super scheme to flop

Axa Asia Pacific chief executive Les Owen predicted that Virgin Money’s push into the direct marketing of superannuation to investors would achieve little success. Virgin Money Australia has earmarked up to $50 million to market a no-frills superannuation product to be launched in July, when changes in the law will allow employees to choose their own retirement fund. Owen said the vast majority of people would not make any decision over their choice of funds, and said “there is ample evidence that the vast majority of people want and need professional advice.” Owen said a similar venture in Britain by Virgin Financial Services “never did go anywhere”.