The current system of default funds under modern awards works well and should not be opened up to unfettered competition, according to Australia Institute of Superannuation Trustees (AIST) chief executive, Tom Garcia.
Opening the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, Garcia said the not for profit funds would be reinforcing the value of the existing default super arrangements and the dangers inherent in any change.
His comments have come at the same time as the Financial Services Council has increased its calls for the Government to change the default fund arrangements to allow all eligible MySuper funds to be available for selection as default funds and for the removal of the Fair Work Commission from the process.
Garcia said that despite what the critics might say employers were afforded choice under the existing default funds regime and those funds which are available have been identified as best suited to meeting the best interests of members.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
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