The Australian Institute of Superannuation Trustees has warned that ASIC’s delay on consumer disclosure requirements will damage retirement outcomes.
The regulator has said this week that it will be deferring consumer disclosure requirements for non-default (Choice) super products for up to four years.
The requirement would mandate a standardised disclosure of fees and performance, called product dashboards, for all their super products, which funds only currently have to provide for their default (MySuper) products.
They have already seen delays since being introduced with the Stronger Super reforms in 2015.
AIST CEO Eva Scheerlinck described the move as a significant blow for members in underperforming non-default funds who would remain in the dark about their fund’s performance.
“In a post-royal commission environment, we should be prioritising action to help consumers get out of underperforming funds,” Ms Scheerlinck said.
“Currently, members of many underperforming ‘Choice’ super products have no way of knowing how their fund compares to industry benchmarks.”
In a report released in January, the productivity commission estimated that more than one-third of products in the Choice (non-default) sector, were underperforming.
Almost all funds found to be underperforming in the commission’s sample survey of Choice products were retail bank or insurance-owned super funds.
The AIST noted that there is more super invested in the Choice sector than in the more highly-regulated default sector.
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