Govt pauses on expansion of YFYS performance test
Minister for financial services, Stephen Jones, has announced Your Future, Your Super performance tests will not be extended beyond MySuper products this year.
In a statement, he said the tests would be reviewed after two rounds after annual tests and Treasury would determine whether it had had any unintended consequences for MySuper products and whether it should be applied to other products.
“Funds must always be held accountable for their performance. In doing so, accountability mechanisms must not simultaneously create perverse or unintended outcomes for members.
“The Government is aware of concerns that the YFYS laws have the potential to create such outcomes by discouraging certain investment decisions or certain infrastructure investments.
“Treasury will be tasked in its review to examine and consider the operation of the new laws in this context,” Jones said.
Responding to his comments, Financial Services Council executive director of policy and advocacy, Spiro Premetis, said: “Given the range of complexities with applying the test to a broader and more diverse range of superannuation investment options, the pause is the right outcome for consumers.
“Proceeding with the test without further consultation could have resulted in consumers being given misleading information about their superannuation funds’ performance.”
Additionally, the Government would also shortly be releasing Exposure Draft legislation for consultation to implement its election commitment to adjust the performance test for faith-based products.
AUTHOR
Laura Dew
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
