Super language should be a matter for Federal review: Doyle
A call has been made for the Federal Government to include a review of the language used in the superannuation sphere as part of its examination of the sector.
The head of superannuation and investments at Suncorp Wealth Management, Vicki Doyle, believes that the use of common language – or the lack thereof, should be a matter of interest for the Government.
“In among all the issues around super that [Superannuation and Corporate Law Minister] Nick Sherry’s super review intends to investigate, there is one glaring omission,” Doyle said.
"As an industry, we are not succeeding communicating with our customers in a meaningful way."
Doyle said the industry is currently engaging in “double speak”, where the same subject is described in two different ways – for example, ‘redemption’ and ‘withdrawal’ and ‘pension payments’ and ‘income streams’.
This is having the effect of collectively clouding the information consumers need to engage with their super.
Doyle pointed to a survey conducted by the Association of Superannuation Funds of Australia (ASFA) last year, which found that only four out of 10 customers claim to understand their superannuation transaction statement.
Doyle believes the super industry needs to employ a “common language” – and that common language must be meaningful.
She believes a review of this issue could include the use of “standard, single terms to describe the common elements of super”.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
