Australian funds should embrace mandatory transparency

transparency/superannuation-funds/super-funds/vanguard/Association-of-Superannuation-Funds-of-Australia/ASFA/

15 November 2018
| By Mike |
image
image
expand image

Australian superannuation funds should not the experience in the US and not be resistant to greater transparency around investment performance and cost, according to Vanguard chairman, Bill McNabb.

Addressing the Association of Superannuation Funds of Australia (ASFA), McNabb noted the attitude to such transparency but said the requirements flowing from the Dodd Frank in the US had ultimately proved to be beneficial.

He said that the US investment industry had originally resisted the transparency requirements with respect to cost and performance but this had proved to be a mistake.

McNabb said that while the requirement had originally be voluntary, it had elicited little support from firms in the US and was not mandatory.

“We fought the idea, but we should not have fought it,” he said.

“Transparency around cost and performance has proved a driver to competition and beneficial change,” McNabb said.

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?...

1 month 4 weeks 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 ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 5 days 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...

2 weeks 4 days ago

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

1 week 3 days ago

TOP PERFORMING FUNDS