The Federal Government has used the Budget papers to reinforce its intention to impose a “retirement covenant” on superannuation funds.
The Budget papers confirmed the Government’s intention to amend the Superannuation Industry (Supervision) Act 1993 (SIS Act) “to introduce a retirement covenant that will require superannuation trustees to formulate a retirement income strategy for superannuation fund members”.
The Budget papers said the Government would also amend the Corporations Act 2001 to introduce a requirement for providers of retirement income products to report simplified, standardised metrics in product disclosure to assist customer decision making.
The Budget announcement comes amid industry concerns that a one size fits all approach will not be appropriate with respect to the development of Comprehensive Income Products in Retirement (CIPRs).
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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