YFYS must not overrule consumer choice: FSC

The Financial Services Council (FSC) is urging the Government to remember that consumer choice comes first when it comes to a review of Your Future, Your Super.

The policy, which was introduced last July, was currently being reviewed with special focus paid to Choice funds and religion-based funds.

It was important, the FSC said, that the Government remembered members of these types of products were often aided by financial advisers in their decision to join these funds, in order to meet their specific risk levels or objectives.

Any review of performance should therefore not run counter to consumer choice or counter to the best financial interest of members.

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In an update, Aidan Nguyen, policy manager for superannuation, said: “An important precedent is being examined by the Government as it reviews performance testing for faith-based products because it recognises that consumer choice comes first.

“Members investing in Choice products have made an active decision to be there.

“We must acknowledge the limitations that come from performance testing individual Choice products and be careful that outcomes in isolation do not override the roles and duties the financial adviser has in reviewing their client’s portfolio at a holistic level.”