AIST consulting funds on FSI interim report
The peak industry superannuation body has welcomed calls by the Financial Systems Inquiry interim report to develop clearer goals for the super system.
The Australian Institute of Superannuation Trustees (AIST) CEO Tom Garcia said he backs calls for a strong regulatory framework for super.
In line with the inquiry asking for more industry consultation around issues such as fees, disclosure, post-retirement, liquidity management and regulation, Garcia said the AIST would discuss with its 60 plus member funds on the issues.
"These issues touch every Australian super fund member in some way or another so any significant structural changes need to be supported with hard evidence that they will lead to real improvements," Garcia said.
The interim report highlighted the effects of recurrent policy changes and short-termism on the super industry.
It said the instability in the super policy settings will add to costs and diminish long-term trust in the system.
It said fiscal cost needs to be sustainable to bring policy stability.
Garcia said suggestions of mechanisms to decrease fees and costs in superannuation should be considered in the context of Australia's pension system.
"Whilst fees and costs are very important, at the end of the day, what matters most to members are net returns to ensure a healthy superannuation balance at retirement," he said.
AUTHOR
Malavika Santhebennur
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