Shorten commits to 2013 MySuper implementation date

financial-advice-reforms/default-funds/assistant-treasurer/government/australian-prudential-regulation-authority/

27 October 2010
| By Mike Taylor |
image
image
expand image

The Government has committed to the introduction of the Cooper Review’s MySuper proposal from 1 July, 2013.

The Assistant Treasurer and Minister for Financial Services, Bill Shorten, committed to the introduction date in a statement delivered to the Parliament yesterday, saying the introduction of MySuper formed the first part of the Government’s response to the Super System Review.

“MySuper is designed to provide a simple, low-cost fund that has no unnecessary fees or charges and simple features that will make it easier to compare fund performance,” he said. “It will replace existing default funds.”

Shorten said that only those funds whose default product met MySuper standards would be able to operate as a default fund.

“Labor will introduce new standards that providers of MySuper products must meet, including no entry fees, with exit fees limited to cost recovery, a ban on commissions and conflicted remuneration structures in relation to retail distribution and advice in line with the Government’s financial advice reforms, new duties will require super fund providers to deliver value for money or be stripped of their licence by the regulator, a single, simple and easy-to-understand investment option designed to maximise a person’s retirement income, and standardised reporting requirements in plain English.

Shorten said MySuper funds would be licensed by the Australian Prudential Regulation Authority, which would also monitor and publish MySuper fund investment returns and costs to ensure members were getting value.

Shorten also committed the Government to the implementation of SupersSteam and the use of Tax File Numbers as identifiers.

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 3 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 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND