Final MySuper legislation delay “sensible”: AIST

Superannuation industry bodies have welcomed federal Minister for Finance Mathias Cormann’s announcement deferring the start date for the choice product dashboard and portfolio holdings disclosure regime from 1 July 2014 to 1 July 2015. 

The Australian Institute of Superannuation Trustees (AIST) CEO Tom Garcia said the deferment meant the industry and the Government could consult further on unresolved issues around the new disclosure requirements. 

“Implementing a new disclosure regime costs time and money, so we need to be absolutely sure we have the right framework in place,” he said. 

The regulation is the final piece of the MySuper legislation, where product providers have to adhere to the product dashboard standard and disclose the dollar value of fees, as well as investment performance and investment risk. 

But Cormann said yesterday the requirements were rushed through without proper consultation in the “dying days” of the previous Labor government. 

“In the course of our consultations on our 'Better regulation and governance, enhanced transparency and improved competition in superannuation’ discussion paper, it has become very clear that large parts of the industry are not ready for implementation and that many issues remain unresolved,” he said. 

“Legitimate concerns have been raised about the practicality of implementing these measures in the required timeframe, as well as the complexities in implementing a portfolio holdings regime.”   

The Association of Superannuation Funds of Australia (ASFA) CEO Pauline Vamos said the extra time would allow for testing the dashboard with consumers, which could give a clearer picture of how funds compare. 

“Given that the MySuper product dashboard is relatively new and has received a mixed response from the industry and the community, it is essential that the process of developing and testing the dashboard for choice products is not rushed,” she said.