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AIST in consultation mode post FSI report
The Australian Institute of Superannuation Trustees (AIST) has backed the Financial Systems Inquiry interim report's suggestion for a stronger regulatory super framework and said it would compile a response.
The peak industry body said it agrees with the inquiry's calls for setting clearer objectives for the super system, and its role in the economy.
"We support the inquiry's focus on the need for superannuation to serve members' best interests and it will be through this lens that AIST will be responding to the key superannuation policy options and observations raised in the report," AIST CEO Tom Garcia said.
He said the AIST would consult with its 60 plus member funds on issues surrounding fees, disclosure, post-retirement, liquidity management and regulation.
Suggestions of mechanisms to decrease fees and costs in superannuation should be considered in the context of Australia's pension system, he added.
"Whilst fees and costs are very important, at the end of the day, what matters most to members are net returns to ensure a healthy superannuation balance at retirement," he said.
The interim report highlighted the effects of recurrent policy changes and short-termism on the super industry, adding fiscal cost needs to be sustainable for policy stability.
It said the instability in the super policy settings will add to costs and diminish long-term trust in the system.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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