How much BT is charging in super fees
Westpac’s BT Funds Management (BTFM) has revealed just how much margin in makes on the administration and investment management fees it charges on BT Superannuation products.
The company has told a Parliamentary Committee that in the 2019 financial year BT Funds Management earned 0.23% while in the following financial year it earned 0.07%.
Labor members of the House of Representatives Standing Committee on Economics had sought detail of what BTFM was earning from its servicing of the BT superannuation funds, noting that according to Westpac’s annual results for 2020, BT had turned a profit of $111 million last financial year and $285 million in the previous financial year.
“How much of this profit was due to: i. Related entities servicing BT? ii. Margin built into BT administration fees? iii. Margin built into other fees charged to members?” Labor’s Andrew Leigh asked.
BT also confirmed to the Parliamentary Committee that it had moved its group insurance covering its superannuation funds from its associated company, Westpac Life to AIA Australia Limited.
“In the case of group insurance, independent advice was obtained in the process which saw the appointment of AIA Australia (an unrelated party) as BT Super’s new group insurer from 1 July 2020. Prior to this appointment, Westpac Life Insurance Services (a related party) was BT Super’s group insurer.”
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.