AIST outlines MySuper proposal
The Australian Institute of Superannuation Trustees (AIST) has reiterated its opposition to tailored MySuper products for employers, saying it detracts from simple, transparent, and comparable products.
If employers could offer countless different white label options with different administration or insurance arrangements, it could lead to hundreds of MySuper products, said AIST project director David Haynes.
Such a system would be more complicated, less simple, less transparent, and lead to less disclosure, he said.
Treasury has previously told Association of Superannuation Funds of Australia members that the fee and insurance flexibility in MySuper made it unnecessary to create and tailor separate MySuper products for employers.
The AIST also raised concerns about the opportunity for flipping employees from one MySuper product to a more expensive MySuper product without their knowledge or consent.
"We don't think that's a good policy outcome," Haynes said.
Haynes also questioned whether the ban on giving general product advice to employers would impact on a super fund's ability to form relationships with employer groups.
Competition was already heating up between super funds for employers to join, he said.
Haynes encouraged super funds to rename their existing default option as a MySuper product, which would save structural costs, administration costs, and mean no change to investments and insurance.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
The ATO has revealed nearly $19 billion in lost and unclaimed super, urging over 7 million Australians to reclaim their savings.
The industry super fund has launched a new digital experience designed to make retirement preparation simpler and more personalised for its members.
A hold in the cash rate during the upcoming November monetary policy meeting appears to now be a certainty off the back of skyrocketing inflation during the September quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
