POWERED BY MOMENTUM MEDIA
Should the sole purpose test be more flexible?
While a number of superannuation funds seek to deal with pointed questions from the Royal Commission around the sole purpose test, a new Super Review survey has revealed support for making the test more flexible.
The survey, sponsored by EISS Super and conducted during the recent Conference of Major Superannuation Funds (CMSF) in Brisbane, found nearly 55 per cent of respondents believed the sole purpose test contained within the Superannuation Industry (Supervision) Act (SIS Act) should be modified to give funds greater flexibility.
A smaller number of respondents believed that flexibility should go even further allowing funds to compete in more areas of the financial services industry.
In all, 51.8 per cent of respondents said they believed the sole purpose test should be modified to give funds greater flexibility, while a further 3.7 per cent said it should be abandoned to enable funds to compete in all areas of financial services.
The same survey found a similar break-down in responses with respect to the coverage of the Royal Commission into Misconduct in Banking, Superannuation and Financial Services.
The survey revealed that just 55 per cent of the superannuation fund trustees and executives who responded to the survey believed superannuation should have been excluded from the Royal Commission.
The support for injecting more flexibility into the sole purpose test accords with the findings of a similar survey conducted by Super Review at November’s Association of Superannuation Funds of Australia national conference in Sydney.
Recommended for you
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.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
