Pursuing a total annual expense ratio (TAER) regime may prove counterproductive in terms of better informing superannuation fund members, according to industry specialist Brett Elvish.
Elvish, the director of Financial Viewpoint, told the Conference of Major Superannuation Funds that the new TAER regime represented a push down the road of further prescription.
"It places a Band-Aid on something that requires radical surgery," he said.
Elvish said it represented a worrying policy which seemed destined to create further distortions.
He said the whole problem with the TAER regime which had emerged from the Cooper Review was that a little knowledge had proved to be a dangerous thing.
Elvish said there was a need to start again with an alternative disclosure regime and removed capital market distortions.
Sunsuper chief investment officer David Hartley had earlier pointed to the degree to which financial institutions could give the appearance of a fee-free environment, with the common feature being the addition of intermediaries.
He said there was a need for disclosure to focus on net returns and what each of the intermediaries were extracting.
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.