The introduction of MySuper represented one of the greatest wastes of time and money ever to be encountered by the Australian superannuation industry, according to Deloitte partner, Russell Mason.
Participating on a panel at Super Review’s Future of Superannuation Conference in Melbourne, Mason said he believed the money and time had been wasted because, ultimately, it had simply amounted to a rebadging of existing default funds.
However, his fellow panellist, Rice Warner chief executive, Andrew Boal disagreed with Mason arguing that, if nothing else, MySuper had succeeded in reducing fees.
Boal said he, himself, was a member of a MySuper fund and he had remained within it because he believed it was appropriate to his needs.
Grow Super head of strategy, Adam Gee said that while he agreed that MySuper had served to contain fees, he believed it had nonetheless fallen sort in many other aspects.
The panel had been asked whether the Cooper Review push for MySuper had failed the superannuation industry in the context of lowering the need for member engagement.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
Russell Mason is spot on with his comment & I could not agree more. That Andrew Boal should disagree is exactly the response I would expect from Rice Warner. A little more practical involvement in the day to day administration might change the theoretical views that are so often expressed by Rice Warner.
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