ISA gives RG97 a qualified welcome

ISA/superannuation/RG97/

25 July 2018
| By Hannah Wootton |
image
image
expand image

Industry Super Australia (ISA) has welcomed Darren McShane’s expert report on RG97 as a “thorough and considered study of a complex area” but says that more needs to be done to address exemptions for bank platforms.

ISA said the report showed the current state of fee disclosure was poor and the costs and fees framework needed to be reviewed.

“A significant amount of good work has been undertaken but this report shows fee disclosure is far too complicated for experts let alone consumers. Much of the complexity is driven by the structure of platforms which straddle both superannuation and non-super investments,” ISA public affairs director, Matt Linden, said.

“The failure to find a solution for the opaque fee structures of super funds that utilise platforms serves to highlight the importance of net returns to assess the relative merits of superannuation options.

“It is likely legislative reform will be necessary to ensure consumer interests are put first.

ISA said the bank platform exemption from consolidated investments costs remained an issue however, despite improvements to other areas canvassed in the report.

“We remain concerned that the business practices of platforms are being accommodated over comparable and understandable disclosure for consumers - but we will continue to work with ASIC as it responds to the report,” Linden said.

The advocacy group called on ASIC to adopt the recommendation to review the regulation and disclosure of bank platform operators.

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?...

2 months 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 1 week 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...

3 weeks 1 day ago

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

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS