The Financial Services Council has applauded new legislation to widen default superannuation fund choice, while Industry Super Australia has said more MySuper fund transparency is required.
FSC chief executive Sally Loane supported the Superannuation Legislation Amendment (Choice of Fund) Bill 2016, which will allow APRA-approved MySuper funds to enter the default super sector. "The legislation is consistent with the FSI recommendation that individuals be allowed to choose their own superannuation fund," she said.
"The Government should be applauded for working towards a transparent and competitive superannuation system that empowers consumers. The FSC supports removal of the anti-competitive role of the industrial relations system in selecting default funds. This will ultimately benefit consumers."
Industry Super Australia chief executive David Whiteley, meanwhile, said the benefit to consumers will be minimal due to "weak" disclosure requirements from retail funds.
"The new laws only require funds to produce a public dashboard for their top 10 products, denying consumers simple, accessible information on thousands of investment options," he explained.
"There will be no ready source of information for current or prospective members about how most of these options stack up in terms of fees or performance.
"Incongruously, the government is also seeking to remove Howard-era choice of fund exemptions, while not requiring super funds to provide consumers with the information they need to make an informed decision.
"The government should be requiring retail and bank-owned super funds to provide easy to understand, comparative information about all of their investment options, much like home loan comparisons."
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