Industry Super Australia (ISA) has welcomed Darren McShane’s expert report on RG97 as a “thorough and considered study of a complex area” but says that more needs to be done to address exemptions for bank platforms.
ISA said the report showed the current state of fee disclosure was poor and the costs and fees framework needed to be reviewed.
“A significant amount of good work has been undertaken but this report shows fee disclosure is far too complicated for experts let alone consumers. Much of the complexity is driven by the structure of platforms which straddle both superannuation and non-super investments,” ISA public affairs director, Matt Linden, said.
“The failure to find a solution for the opaque fee structures of super funds that utilise platforms serves to highlight the importance of net returns to assess the relative merits of superannuation options.
“It is likely legislative reform will be necessary to ensure consumer interests are put first.
ISA said the bank platform exemption from consolidated investments costs remained an issue however, despite improvements to other areas canvassed in the report.
“We remain concerned that the business practices of platforms are being accommodated over comparable and understandable disclosure for consumers - but we will continue to work with ASIC as it responds to the report,” Linden said.
The advocacy group called on ASIC to adopt the recommendation to review the regulation and disclosure of bank platform operators.