The Investment and Financial Services Association (IFSA) will push for the government to reverse its decision on the current line-up of default funds in Australia's award system.
The move by IFSA follows the launch of its super charter last week, which called for a ban on commissions paid to superannuation funds.
"This is what our charter will do. It will strip 50 to 70 basis points off retail fees because of an end to trail commissions. Advertising and other marketing fees will also be lower and this will mean much more competitive pricing in the market," IFSA chief executive Richard Gilbert said.
With retail fees falling, Gilbert said retail superannuation funds will be as cost effective as those funds in the not-for-profit sector.
"We will be calling on the government to reverse its decision on default funds as we believe retail funds are now just as competitively priced," he said.
In January, the Australian Industrial Relations Commission (AIRC) chose 12 not-for-profit super funds as default funds under the government's award modernisation program. AMP was the only retail fund that received a nomination.
Gilbert said IFSA will push Minister for Superannuation Chris Bowen to review the decision.
He said he was surprised the chair of the newly-appointed inquiry into superannuation, Jeremy Cooper, has not yet placed the issue of default funds on the agenda.
"Jeremy has announced that he is looking at every other fee but default fund fees. It's disappointing that it is not a headline issue for the review," Gilbert said.
