In its submission to phase three of the Cooper review, industry fund QSuper has recommended self-managed superannuation funds (SMSF) be required to disclose data to allow for comparisons with other funds and options.
"QSuper is concerned where people naively establish any superannuation arrangements. It is important for people to be well informed when exercising any choice," QSuper said in its submission.
The fund called on SMSFs and all other segments in the industry to be subjected to high disclosure standards "that are transparent and consistent".
Under the plan, SMSFs would be required to complete general purpose financial reports so that assets are annually marked to market.
"Common accounting valuation methodologies will enhance data comparison and allow for more accurate assessments of the SMSF sector against the Australian Prudential Regulation Authority (APRA) regulated sector," the submission said.
"The disclosure of after tax fees, returns and net performance would enable individuals to make comparisons."
Meanwhile, CPA Australia has also released its submission to Cooper review phase three. Unlike QSuper's submission, it saw no problems with the SMSF sector.
"On the whole, CPA Australia believes there is no evidence to suggest significant change is necessary regarding the structure, operation and/or regulation of SMSFs," the accounting body's submission said.
It was satisfied the current regime of using auditors to monitor the 410,000 SMSFs was sufficient.
"The high rate of compliance is testament to the SMSF compliance regime and the effectiveness of the independent audit regime. The ATO (Australian Taxation Office) does not have the resources to monitor each and every one," it said.
Furthermore, CPA Australia said SMSFs often lead the superannuation industry in innovation and were able to respond more quickly to the needs of members and legislative change due to their size.
Cooper's preliminary views on SMSFs will be released in April or May.
