POWERED BY MOMENTUM MEDIA
End trails, says Cooper
Trailing commissions relating to superannuation products would be banned and super trustees would be obligated to manage the costs imposed on members under the MySuper proposals, which form a central element of the latest preliminary report issued by the Cooper Review.
The report, released today, builds on many of the private briefings and statements issued by the review chairman, Jeremy Cooper, over recent weeks.
Releasing the preliminary report today, Cooper said MySuper would be a simple, cost-effective product that redefined what Australians should be able to expect from their super in the 21st century.
He said some of the proposed features of MySuper included: the ban on trailing commissions; the elimination of contribution fees; a new duty on trustees to manage the overall cost to members; a default post-retirement product; and a trustee duty to focus entirely on looking after members.
The preliminary report is underpinned by research commissioned from Deloitte, which Cooper claimed showed that if the MySuper proposals were introduced, some default fund members could expect to pay less than half what they are paying for their super now.
“The panel emphasises that, if the MySuper proposals were implemented, those Australians who elect to have a fund that offers more choices and options, or want to manage their own self-managed super fund, would be entirely free to do so,” Cooper said.
He said MySuper would be just one offering in the super landscape but he expected that MySuper features such as the ban on trailing commissions would be recommended to apply across the board.
AUTHOR
Mike Taylor
Recommended for you
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous year when its cautious stance on listed markets came at a cost to members.
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
