The superannuation test benchmark needs to be a two-stage assessment to avoid potential automation issues, like with the Federal Government’s Robodebt program, according to the Association of Superannuation Funds of Australia (ASFA).
Dr Martin Fahy, ASFA chief executive, said there was still significant challenges to be addressed with the Your Future, Your Super bill to protect millions of fund members from unnecessary confusion and disruption.
“The Australian Prudential Regulation Authority’s (APRA’s) determination of performance should be a two stage assessment – the current benchmark test and, if a product does not pass that test, a second assessment as to whether the product is delivering good member outcomes and is likely to meet the benchmark going forward,” Fahy said.
“There can be perils when ‘automating’ decisions that should be subject to human oversight, as we saw with the Robodebt saga.”
Fahy said it was also a general principle of administrative law that decisions that materially affected citizens should be subject to review.
“These are major decisions impacting millions of Australians and they deserve to know that due process is being followed,” Fahy said.
“The Australian Securities and Investments Commission (ASIC) requires us to warn consumers that past performance is not always the best indicator of future performance.
“Many funds have recently reduced fees and we know that will lead to enhanced performance outcomes. This should be considered before good funds are consigned to the scrap heap.”
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.