Financial advisers may have been the target for a lot of criticism by superannuation funds, but the latest Australian Prudential Regulation Authority (APRA) data reveals they appear to be at the bottom of the list when it comes to who extracts the most from superannuation fund members.
New data released by the Australian Prudential Regulation Authority (APRA) has listed the big ticket fee-takers in superannuation as being administrators and fund managers followed by advisers and then insurers.
According to the APRA data covering the 12 months to the end of June, last year, superannuation represented a multi-billion dollar opportunity for those extracting fees.
It said fees paid totalled $8.5 billion for the year ended 30 June, 2020, with 91% of fees paid by members and the remaining balance largely paid by employer sponsors or from reserves.
“Administration fees in the year ended 30 June, 2020, totalled $3.6 billion, insurance fees totalled $0.1 billion, investment fees totalled $2.9 billion, advice fees totalled $0.9 billion and activity fees totalled $0.7 billion,” the APRA data revealed.
It said the remaining fees paid comprised switching fees, exit fees and other fees.
