Industry Super Australia (ISA) has warned against the federal government’s proposal to scrap product disclosure requirements for bank-owned and retail super funds.
In a statement, ISA said the new federal government proposals “carve out” bank-owned super funds held through platforms and legacy products from having to disclose details on product dashboards.
Changes to product dashboard requirements mean that bank-owned super funds will not have to disclose many of their underlying investment costs, the statement said.
ISA chief executive David Whiteley said: “We are concerned that these proposals have not been through a rigorous evaluation.
“In their current form the proposals are internally inconsistent, seeking to extend choice of fund without providing consumers with the necessary information to make informed decisions.”
In its submission to Treasury, ISA recommended that the government not proceed with the changes until the product dashboard regime includes all superannuation products and investment options, with no carve-outs for retail or bank-owned funds. ISA also suggested a cost-benefit analysis to be undertaken.
“Despite very few Australians actively choosing a fund other than the default one their employer has in place, everyone needs to be able to compare the performance of funds to be able to make an informed decision,” said Mr Whiteley.
“It is not good enough that the banks want to hide their chronic underperformance from consumers.”
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