Industry Super Australia (ISA) has sought to use the latest Australian Prudential Regulation Authority (APRA) superannuation data to reignite its calls for retail super funds to be compelled to include all their investments on super choice product dashboards.
ISA chief executive said the data showing industry funds had out-performed retail funds by around two per cent for the 12 years between June 30, 2004 and June 30, 2005 substantiated his call.
“The data demonstrates why proposed “dashboards” for super choice products and investment options, which clearly inform consumers of fees and returns, must not exclude the majority of bank owned and retail super choice product options,” Whiteley said.
He claimed the banks had been lobbying the government to exempt an estimated 72 per cent of super choice product options offered by bank-owned funds from having to disclose their fees, all underlying costs, risk and net returns in the blunt, standardised “product dashboard” format.
“These carve outs, included in draft legislation, will prevent Australians from making informed choices about their super,” Whiteley said.
“It is anti-competitive and protects poorly performing bank-owned super funds from greater levels of transparency. It’s clear these funds oppose full disclosure of their investment returns because of their uncompetitive performance.”
Early claims by Whiteley about the exclusion of retail fund investment options from product dashboards drew a denial from the Assistant Treasurer, Kelly O’Dwyer but the ISA chief said the gap between the returns of not-for-profit industry super funds and for-profit funds run by the banks should be of great concern to the government.
