Industry funds attack fees - again
The Industry Super Network (ISN) has fired another salvo at ongoing advice fees and commissions, arguing that retail superannuation funds should rule out any reporting method for returns that fails to disclose the true costs of fund administration.
ISN chief executive David Whiteley has criticised the Financial Services Council standard adopted by the retail super funds which he said failed to include the costs of administration fees or ongoing advice fees and commissions, and made the reported returns appear on average 0.7 per cent a year higher.
Whiteley said the methodology being utilised by the retail funds raised a number of regulatory and consumer protection concerns.
He said the ISN would support the Government working with the financial services sector to develop industry-wide protocols for transparent and comparable reporting of investment returns.
“Given the compulsory nature of super, funds have a higher duty of care to their members,” Whiteley said. “This duty of care includes the transparent reporting of fund returns net of all taxes and expenses.”
AUTHOR
Mike Taylor
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