POWERED BY MOMENTUM MEDIA
SCT confirms winners and losers in super rollovers
A Superannuation Complaints Tribunal (SCT) determination has confirmed there are winners and losers in superannuation account rollovers, depending on timings.
Dealing with a complaint in which a superannuation fund member wanted to roll his balance into a Self Managed Superannuation Fund (SMSF), the SCT pointed to the need for fund members to ensure they were aware of the underlying pricing methodologies.
The superannuation fund member and his financial adviser had suggested the system was not equitable because some members could manipulate the timing of their rollover to their advantage, while those members, who are unaware, were disadvantaged.
The SCT acknowledged the member’s claims but its determination said, “notwithstanding the ingenuity of the Complainant's arguments about the innate unfairness of the Trustee's Methodology, the core issue still comes down to timing; namely the timing of a rollover request and the date of processing, inevitably produces winners and losers when dealing with equity markets”.
“So long as the Trustee effects its Methodology in a reasonable timeframe and in a consistent manner, and there has been no suggestion to the contrary on either of those scores, then it is what it is,” the SCT determination said.
“While the Tribunal has noted the Complainant's contentions in respect of the methodologies employed by other trustees in terms of rollovers out of their funds, the Tribunal has no doubts that
those rollovers also produce 'winners and losers' from a timing perspective”.
Recommended for you
IFM Investors has urged for government-industry collaboration to accelerate projects, unlock capital, and deliver long-term returns for Australians.
With super funds turning increasingly to private credit to lift returns, experts have cautioned that the high-yield asset class carries hidden risks that are often misunderstood.
The super fund has confirmed its chair Andrew Fraser plans to retire at its upcoming annual member meeting in November.
Australia’s superannuation sector is being held back by overlapping and outdated regulation, ASFA says, with compliance costs almost doubling in seven years – a drain on member returns and the economy alike.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
