POWERED BY MOMENTUM MEDIA
RG 97 does not protect members on platforms
The corporate watchdog’s guidance on fee and cost disclosure, Regulatory Guide 97 (RG 97), does not go far enough in protecting members that have their superannuation invested across platforms, according to the Australian Institute of Superannuation Trustees (AIST).
AIST chief executive, Eva Scheerlinck, told Super Review, that while the Australian Securities and Investments Commission’s (ASIC’s) guidance was an important step forward in disclosure and transparency of super products, it did not go far enough to protect the interests of members who had their super invested across platforms provided by banks and investment managers.
The guide said that “fees and costs of accessible financial products made available through a platform are not required to be disclosed (in most circumstances) in the PDS (or IDPS Guide) or in the periodic statements of the platform”.
ASIC said that as the member, rather than the platform operator, chose to invest in a particular financial product and received disclosures about the product, the accessible financial product “is not considered to be an interposed vehicle for the purposes of fees and costs disclosure”.
“Key exemptions for platforms continue to exist which means consumers in these products are not getting the full story and may actually think they are less expensive than they are,” Scheerlinck said.
“The exemptions also make it impossible to compare platforms and non-platform superannuation products.
“Platforms are a huge portion of the Australian financial system and members should not have to wait for platforms to be brought into line with improved disclosure requirements.”
AIST’s submission to the consultation of RG 97 in April noted that platforms were a huge portion of the Australian financial system and members could wait no longer for platforms to be brought in line with improved disclosure requirements.
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(%)
