AMP has urged a move away from the model that pits industry superannuation funds against retail master trusts by implementing new descriptors for superannuation funds.
In its submission to the Cooper Review, AMP argues that the industry should move from the categorisation of funds according to their ownership or legal structure such as industry, retail, corporate and self managed funds.
Instead, it suggested that a new regulatory framework should be introduced based on the nature of the customers being served (eg, ‘default market’ and ‘choice market’).
In backing its argument, the AMP submission said that industry funds had now generally become public offer funds and that the differences between large public offer industry funds and retail funds were becoming blurred.
It said that notwithstanding the ‘not for profit’ distinction, the customer offerings of both segments had similarities. These included employing financial planners, the introduction of retirement products and the broadening of insurance offerings.
At the same time, the AMP submission argued that several retail funds were now offering low cost options which had many of the characteristics of an industry fund including low cost, simplicity and limited investment options.
