The Government has defended the manner in which it has included administration fees in Your Future, Your Super superannuation fund performance tests in the face of criticism that it will favour laggards.
Being questioned during a Financial Services Council (FSC) webinar today, the Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume acknowledged the issue but said that the move to include the cost of administration fees would ultimately further strengthen the arrangements.
What is more, Hume said that a Treasury assessment of the inclusion of the administration fees had not significantly altered the picture of the number of funds that were underperforming.
FSC deputy chief executive, Blake Briggs had asked Hume whether the manner in which administration fees had been included in the super fund performance arrangements might have served to disadvantage funds which had acted quickly to address high fees while advantaging laggards.
He asked whether the changes had simply served to make those funds look better.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
Perhaps another way to ask the question is: "Will this catch out those funds who have arranged their business model around skimming member returns through over-inflated Administration fees?"
Answer: "Undoubtedly"
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