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”.
