In a move that will please industry superannuation funds, the Federal Government has announced it will extend the so-called “superannuation outcomes test” to choice products, most of which exist within retail superannuation funds.
In an announcement to the Association of Superannuation Funds of Australia (ASFA) conference, Assistant Treasurer, Stuart Robert said the Government has listened to industry concerns and in response would amend the legislation to extend the outcomes test to choice products as well as MySuper products.
“The extended outcomes test will impose a new covenant on trustees which extends the current obligation on MySuper trustees to promote the financial interest of members to trustees of choice products as well,” he said. “Our amendment makes sure that trustees are considering the outcomes being provided to all members, including those with over $1 trillion in APRA-regulated assets outside of the MySuper sector.”
The minister said the Government would also be making a change in response to concerns around the consistency of disclosure to put beyond doubt that portfolio holdings disclosure applied to all choice products, even where there was a no investment option.
“I would like to make it clear that there was no carve-out for platform products in the original Bill, however this change will put any concerns to rest,” he said. “We will be looking to table these amendments, as well as some other minor amendments in the Senate.”