New MySuper draft regulations relating to the product dashboard represent the “final stage” of the reforms, and are aimed at helping Australians better understand how their fund is performing, Mr Shorten stated.
“For the first time, Australian consumers will be able to easily compare super products based on easy to understand information,” he said.
“This is a key aspect of the Government’s MySuper reforms, and I urge members of the public, consumer groups and the superannuation industry to get involved in providing feedback.”
The standard format or product dashboard will provide a single, consumer friendly, one-page summary of key performance indicators for each MySuper product.
These will include an annual dollar disclosure of fees, the target investment return and a clear statement of investment risk.
Consumer testing of a proposed product dashboard will be undertaken during the consultation process, according to the government statement.
Specifically, MySuper providers will be required to prescribe how information in the product dashboard is to be worked out and presented and how fees for superannuation products are to be disclosed in product disclosure statements.
They will also have to prescribe portfolio holdings information, to be publicly available on a registrable superannuation entity (RSE) licensee's website and specify the types of documents and information that trustees will need to publish on their websites, including trustee and executive remuneration.
RSEs will have to include the latest product dashboard in the member's periodic statement and inform members that they can request written reasons for decisions made in relation to non-death benefit complaints.
The draft regulation also prescribes factors that may be used for a lifecycle investment strategy and clarifies the circumstances in which a person is a defined benefit member to ensure they are excluded from certain MySuper requirements (giving priority to accumulation interests over defined benefit interests in the event of a wind-up).
