POWERED BY MOMENTUM MEDIA
Regulators hamstrung on choice products, says AIST
The Government’s design and distribution obligations legislation may be ineffective in dealing with choice superannuation products because of the sheer scale of the exercise, according to the Australian Institute of Superannuation Trustees (AIST).
Providing an answer to questions on notice from the Senate Economic Legislation Committee, the AIST said it believed the legislation was deficient because the regulators would be hamstrung by not having access to reports or disclosures.
The AIST told the committee it was concerned that the Bill would not be effective, given the practical impossibility of the regulator being able to identify which of the 40,000 choices should be subject to the product intervention power.
“Additionally, the regulators are placed in a difficult situation given that there is a lack of a level playing field regarding both disclosure and reporting to the regulators,” the AIST answer said.
It outlined the AIST’s key concerns as being:
• A lack of dashboards for Choice products.
• APRA does not collect or publish statistics for Choice products. This – and the lack of Choice dashboards – will also render a regulator assessment of member outcomes ineffective.
• Regulatory Guide 97 fee and cost disclosure has numerous carveouts which mean fees and costs cannot be compared.
The AIST submission argued that the carveouts to both disclosure and reporting requirements were systemic and provided the Senate committee with an analysis citing the inequity of not including choice products within the member outcomes regime.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
