Industry funds attack fees - again

commissions/industry-super-network/financial-services-sector/industry-funds/financial-services-council/chief-executive/government/

12 October 2010
| By Mike Taylor |

The Industry Super Network (ISN) has fired another salvo at ongoing advice fees and commissions, arguing that retail superannuation funds should rule out any reporting method for returns that fails to disclose the true costs of fund administration.

ISN chief executive David Whiteley has criticised the Financial Services Council standard adopted by the retail super funds which he said failed to include the costs of administration fees or ongoing advice fees and commissions, and made the reported returns appear on average 0.7 per cent a year higher.

Whiteley said the methodology being utilised by the retail funds raised a number of regulatory and consumer protection concerns.

He said the ISN would support the Government working with the financial services sector to develop industry-wide protocols for transparent and comparable reporting of investment returns.

“Given the compulsory nature of super, funds have a higher duty of care to their members,” Whiteley said. “This duty of care includes the transparent reporting of fund returns net of all taxes and expenses.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS