Industry funds claim RG97 disadvantage
There is a danger that industry and other “profit to member” superannuation funds will be shown in a bad light by the new fee disclosure arrangements entailed in Regulatory Guide 97 (RG97).
Further, industry funds-based organisation, the Australian Institute of Superannuation Trustees (AIST) has told the Senate Economics Legislation Committee that specialist superannuation research and ratings house, SuperRatings had indicated that the implementation of implementation of RG97 is unlikely to resolve all differences regarding fee and cost disclosure.
It said that in these circumstances, “legislative prescription may be required to resolve comparability”.
However, on the question of RG97 and the comparability of fees, the AIST answer to a question on notice said SuperRatings had noted especially “that profit-to-member funds are likely to be adversely impacted due to their investment in a broader range of asset class than for-profit funds”.
And in an apparent swipe at retail superannuation funds and vertically-integrated structures, the AIST answer added: “We note also, that inconsistencies in treatment of interposed vehicles will necessarily create opacity in relation to related party payments. This must be resolved in order to correctly state costs associated with members’ investments”.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.