AIST wants MySuper transition accelerated
Concerns about the fees being charged on default superannuation funds are prompting calls for the final transition date for savings to be moved to a MySuper account to be brought forward.
The Australian Institute of Superannuation Trustees (AIST) called on the Australian Prudential Regulation Authority (APRA) to prioritise fee disclosure on all default super accounts, not just those paid on MySuper products.
AIST executive manager, policy and research, David Haynes, said the industry was in the dark about the fee charged on the estimated $77 billion of default super savings outside the MySuper environment.
"Until the industry has a better idea of the fees charged on these default accounts, we won't be able to fully assess the extent they are inflating the level of fees paid by unsuspecting fund members," he said.
"In a compulsory super system such as ours, we don't think it is fair that some members of default funds should have to wait nearly three more years to benefit from fee reductions."
With the interim report form the Financial System Inquiry raising concerns over the fee levels in the super sector, the AIST said it wanted to see the final transition date for default super savings to be moved into a MySuper product brought forward from 30 June 2017.
APRA's initial Quarterly MySuper Statistics reports, covering the four quarters ending September 2013 to June 2014, revealed that $359 billion currently in MySuper products.
"The lion's share of this money is invested in good value, high performing not-for profit funds," the AIST said.
"By contrast, just $13 billion of savings in bank-owned and other retail funds has been transferred to the MySuper space."
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