Industry fund ad blitz under the microscope
Industry fund ad blitz under the microscope
The prudential regulator has confirmed it’s conducting an investigation into how super funds justify promotional spending as being in member best interests, following sharp criticism from Liberal backbenchers around industry fund advertising and media deals.
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Addressing the Conference of Major Superannuation Funds on Wednesday, APRA deputy chair Helen Rowell said the prudential regulator was currently conducting a review of trustee promotional spending and how this was contributing to member outcomes.
“It is important that regulators continue to ensure the multi-trillion-dollar pool of super money is being invested appropriately, in ways that advance the best interests of members, and hold trustees to account to ensure they are doing so,” Ms Rowell said.
Labor support of super bill ‘far from certain’
Labor support of super bill ‘far from certain’
Labor’s financial services spokesman has indicated the opposition will move to block the Your Future, Your Super reforms if a number of amendments aren’t adhered to.
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Addressing the Conference of Major Superannuation Funds on Wednesday, shadow assistant treasurer Stephen Jones said the reforms – due to be debated when parliament resumes – were “deeply flawed” despite recent clarifications made by the government in the supporting regulations, and that he did not “expect an easy Passage for the bill”.
“Stapling provisions in the legislation could see 3 million workers defaulted into underperforming funds, and the directions power gives the Treasurer the extraordinary power to cancel any super investment,” Mr Jones said.
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The Government has confirmed it is moving ahead with progressing the Retirement Income Covenant which was deferred last year to 1 July, 2022.
Speaking at the Conference of Major Superannuation Funds (CMSF), Minister for Superannuation, Financial Services, and the Digital Economy and Minister for Women’s Economic Security, Jane Hume, said the purpose of the retirement income system was to provide income in retirement and smooth consumption between working life and retirement.
Hume said the covenant would require trustees to have a strategy to generate higher retirement incomes for members.
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“The choice heatmap is set to highlight in bright red precisely which multi-sector products are charging the highest fees or have the poorest investment performance. So, all trustees would be wise to be taking a close look now at the outcomes they are delivering for their choice members and taking proactive steps to fix any identified weaknesses,” she said.
“Another area where we would like to see numbers ticking down is the number of funds, products and investment options,” Rowell said.
“APRA has been pushing hard for several years for more fund mergers. This isn’t simply about weeding out persistent underperformers, or making the sector easier to navigate for members – although both are important. It’s also about scale.