Superannuation funds trustees have been sent reminder notifications by the Australian Securities and Investments Commission (ASIC) regarding changes to disclosure requirements around fund mergers.
Super funds are required to inform members about any merger of funds and provide transferring members with a new product disclosure statement (PDS) that explains the new product the member will hold following the merger, ASIC stated. Super funds are also required to update PDSs explaining the merger to prospective members, it added.
The reminder to super funds came about as a result of ASIC being aware that merger and consolidation activity was occurring in the superannuation industry, ASIC stated.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
Add new comment