Push for new super reporting regime

Nick Sherry

Superannuation funds can expect formal Federal Government support for a new regime encouraging them to provide members with personalised historical fund return reports, following endorsement of the practice by the Minister for Superannuation and Corporate Law, Senator Nick Sherry.

Sherry has endorsed the Australian Securities and Investments Commission (ASIC) best practice guide encouraging the personalised reports stating that providing such detail will mean members get information in a way that is tailored to their individual needs.

His comments came as the practice was endorsed by the Industry Super Network, with executive director David Whitely stating that encouraging super funds to include returns over five and 10 years was sensible given the long-term nature of super.

“Such a move would help put the fluctuations of one year returns into an appropriate context,” Whitely said.

Sherry said that he had recently met with ASIC and had voiced his concern over how funds were reporting returns.

“Super is a long-term investment, so educating members to consider the long-term picture is critical,” the minister said. “Even if a fund has produced a negative return in certain years, it may still be a sound investment which produces strong returns overall.”