POWERED BY MOMENTUM MEDIA
Funds to get forecasting relief
The Australian Securities and Investments Commission (ASIC) has moved a step closer to delivering on one of the Federal Government’s key election promises — the provision of retirement income forecasts by superannuation funds.
The regulator yesterday (Wednesday) issued a further consultation paper dealing with its proposals to offer relief to superannuation funds, enabling them to provide what would amount to retirement projections.
ASIC is proposing to give class order relief from the licensing provisions of the Corporations Act to super fund trustees who provide retirement projections to their existing members with their periodic statements. As well, for super fund trustees who already hold and Australian Financial Services Licence (AFSL) with an authorisation to give personal advice, ASIC has said it will give relief from the personal advice, conduct and disclosure requirements.
Outlining its objectives in a consultation paper, ASIC claimed many Australians did not engage well with the issue of superannuation, had little idea of how much they would have when they retire or how much they would need.
“Because of this, they may be missing crucial opportunities to review their superannuation and take action to ensure they will achieve financial security during retirement,” the regulator said. “We think that part of the solution to this problem will be to improve the clarity and effectiveness of information provided to fund members about their superannuation.”
“Our view is that members may benefit from personalised superannuation forecasts, giving them an indication of how much money they will receive when they retire. We think that such forecasts will help members to engage with their superannuation,” ASIC said.
AUTHOR
Mike Taylor
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
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(%)
