A significant number of superannuation fund trustees and executives believe there need to be changes to the sole purpose test to give them more flexibility to operate in current commercial circumstances.
A survey conducted at the recent Association of Superannuation Funds of Australia (ASFA) national conference revealed the degree to which fund executives and trustees regarded the terms of the sole purpose test contained within the Superannuation Industry (Supervision) Act as an impediment.
The survey, sponsored by EISS Super, noted that the sole purpose test restricted the services that could be offered by superannuation funds, and then canvassed whether it should be modified, made more flexible or abandoned.
Significantly, more than half of respondents to the survey said they believed it should be either made more flexible or abandoned altogether, with most opting for a more flexible approach.
The survey revealed that 48.7 per cent of respondents believed the sole purpose test should be made more flexible, while a further 5.1 per cent believed it should be abandoned altogether.
However, 35.80 per cent of respondents said they believed it should left alone and retained in its present form.
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
The reason EISS wants it changed so industry funds can keep using member funds to continue the exorbitantly expensive adverting campaigns and directors fees and benefits.