The industry funds representative body, the Australian Institute of Superannuation Trustees (ASIT) has warned that the Federal Government’s new proposed new legislation aimed at injecting more transparency into choice of fund arrangements does not go far enough.
The AIST has pointed out that around 90 per cent of fund investment options will not be required to have dashboards and has claimed this means that only members in certain options will be able to know all the facts.
AIST executive manager, Policy, David Haynes said that while the direction of the Government’s legislation was welcome and would make it easier for superannuation fund members to compare a bigger range of superannuation products, it was disappointing that it would only be available on the ten largest choice investment options as measured by funds under management.
“Around 90 per cent of fund investment options will not be required to have dashboards,” he said. “Basically, we are only allowing members in certain options to know all the facts.”
For its part, the Financial Services Council (FSC) welcomed the legislation, particularly those elements which would allow super fund members to have choice irrespective of their involvement in enterprise agreements.
“In a compulsory universal system which mandates that every working Australian saves 9.5 per cent of their salary in a fund that cannot be accessed until they retire, Australians deserve choice and the right to leave a poorly performing superannuation fund in favour of a highly performing fund,” FSC chief executive, Sally Loane said. “This is central to establishing a superannuation system that puts consumers first.”
“Some enterprise agreements specifically prevent employees from choosing their own superannuation fund and mandate their membership of an employer sanctioned fund,” she said. “Enterprise agreements are preventing an open and competitive superannuation system where both employers and employees can choose the super fund that best suits their needs.”
