RG97 carve-outs labelled a distortion
Industry superannuation fund body, Industry Super Australia (ISA) has called on the Government to defer the implementation of RG97 dealing with fee and cost disclosures until it can guarantee full disclosure by reversing the exemptions on platforms and intermediary trusts investing in real property or infrastructure.
ISA chief executive, David Whiteley on Friday claimed the new RG97 regime would make it impossible for consumers to compare super fund fees and costs giving bank-owed and other retail super funds another leg up by failing to capture investment platforms.
He claimed that RG97 contained inexplicable carve-outs such as the exclusion of investments via platforms.
“These carve-outs make it almost impossible to achieve consistent and accurate fee and cost disclosure, denying investors the opportunity to accurately compare the products available to them and determine whether a particular product represents value for money,” Whiteley said.
“In its current form, RG97 will create perverse incentives for super funds to change the way they invest, using the carve outs to hide costs,” he said.
Recommended for you
The Federal Court has issued its verdict in ASIC's first greenwashing case against Vanguard Investments Australia regarding the use of ESG exclusionary screens.
Investment managers who plan to implement artificial intelligence in the next five years expect to see increased productivity, but views are mixed on whether it will boost revenue and assets under management.
A former corporate adviser has been sentenced in the Supreme Court of Western Australia for insider trading to realise a profit of more than $57,000.
Private markets expertise is sought-after for investment operations hires as allocations to alternative assets rise, according to a recruitment firm, but there is a gap between demand and supply.