RG97 carve-outs labelled a distortion
Industry superannuation fund body, Industry Super Australia (ISA) has called on the Government to defer the implementation of RG97 dealing with fee and cost disclosures until it can guarantee full disclosure by reversing the exemptions on platforms and intermediary trusts investing in real property or infrastructure.
ISA chief executive, David Whiteley on Friday claimed the new RG97 regime would make it impossible for consumers to compare super fund fees and costs giving bank-owed and other retail super funds another leg up by failing to capture investment platforms.
He claimed that RG97 contained inexplicable carve-outs such as the exclusion of investments via platforms.
“These carve-outs make it almost impossible to achieve consistent and accurate fee and cost disclosure, denying investors the opportunity to accurately compare the products available to them and determine whether a particular product represents value for money,” Whiteley said.
“In its current form, RG97 will create perverse incentives for super funds to change the way they invest, using the carve outs to hide costs,” he said.
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
