ASFA lobbies for clearer fee disclosure
The Association of Superannuation Funds Australia (ASFA) has called for further clarity in the Government’s proposed regulations covering fee disclosure relating to superannuation funds.
In a submission to the Treasury, ASFA policy and research director, Dr. Michaela Anderson said that while some of the Association’s earlier concerns had been addressed within the draft regulation, further clarity would be needed in particular areas.
Anderson said those areas included the calculation of management costs and indirect cost ratios.
In addition, Anderson’s submission suggested that the proposed July 1 implementation date for the new regulations would “represent a major challenge for superannuation funds”.
Dealing with management costs, the submission raised concern that the definition of management costs, when read in association with a particular clause in the regulations may give rise to “double counting” when current and prospective fees are taken into account.
ASFA recommended that the potential for double counting be resolved through a clear requirement ensuring prospective and historical fees are not counted together when calculating management costs.
The superannuation body said that the calculation of management costs/indirect cost ratio would be one of the major challenges for many superannuation funds and, because of this, clear guidance would be needed to ensure accuracy and consistency.
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