Australian Institute of Superannuation Trustees chief executive Tom Garcia has said that the Productivity Commission Review of superannuation should focus on the underperformance of funds in the Choice sector.
Specifically, Garcia recommended that the review should examine Choice fund fees and "opaque disclosure" standards.
"We need to recognise that improving super efficiency necessarily means a holistic review of the entire system. We've seen fees reduce significantly in the MySuper environment but they have barely moved in the Choice environment," he explained.
"The Government needs to get moving on the consultative process required to set objectives of the super system - as recommended by the Financial System Inquiry. We question how the Productivity Commission can develop measures to assess the efficiency of the system, without any agreement on the objectives of superannuation - it's putting the cart before the horse.
"Given that the PC Review will not be completed until the next term of government, the Government needs to address the current hiatus on default fund selection and let the Fair Work Commission get on with the work it has been tasked to do by Parliament. The more this process is stalled, the more uncertainty there is for super funds."