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While the major point of difference between the Investment and Financial Services Association (IFSA) and the recommendations of the Cooper Review remains the simpler default mechanism, MySuper, AMP has revealed it is positioned to provide a MySuper option.
IFSA chief executive John Brogden said his organisation broadly welcomed the recommendations of the Cooper Review, particularly the SuperStream proposals, but described the MySuper template as being paternalistic and more likely to increase costs than reduce them.
However, AMP chief executive Craig Dunn said AMP supported the principle of MySuper and was actually positioned to meet customers’ needs.
“AMP supports the principle of MySuper and we are well-positioned to offer customers a MySuper option with the recent launch of AMP Flexible Super Core,” he said.
For its part, the Financial Planning Association (FPA) described the Cooper Review’s final report as a lost opportunity. The FPA’s new chief executive, Mark Rantall, said in circumstances where the average super accumulation balance was $70,000 as at June 2009, the real issue was increasing Australian’s contributions to superannuation.
“While increases in superannuation guarantee (SG) contributions will help, advice and education will make the difference,” Rantall said.
He said the report had portrayed advice from intermediaries as something to be discouraged in both MySuper and in the Choice environment and, instead, had focused on reducing costs.
West Australian fund GESB expressed views similar to the FPA and said there should have been more focus on member education.
The Australian Institute of Actuaries also described the Cooper Review as a key opportunity to address longevity risk and therefore adequate retirement incomes that had been missed.
The Self-Managed Super Fund Professionals’ Association (SPAA) welcomed those elements of the Cooper Review supporting a low-touch approach with respect to self-managed superannuation funds (SMSFs) while lamenting its recommendations against allowing SMSFs to invest in exotics and failure to support higher standards with respect to auditors and advisers.
