Proposed changes to superannuation fee disclosures are still too confusing for consumers, warns Industry Super Australia.
Industry Super Australia (ISA) has provided input on the proposed changes to Regulatory Guide 97, saying the proposals don't go far enough to address the complexity of fee disclosure.
The group is worried consumers still won't get the clarity they need to make informed decisions on fees and cost comparisons.
ISA chief executive Bernie Dean said attempts to improve this system are long overdue and the ASIC proposal is misguided - he believes the changes could actually confuse consumers more.
"The current proposal by ASIC only serves to reinforce the inconsistent and confusing fee disclosure structure - whereby platforms owned by banks and investment managers would only be required to disclose the cost of gaining access to a product, not the cost charged by those issuing the product," he said.
"This means consumers may believe these products are less expensive, while unaware they will then have to pay additional fees and charges on top of what has already been disclosed."
Consumers should be able to make fair and reasonable comparisons and have confidence they are comparing apples with apples, he added.
"Under the current ASIC proposal, all consumers will benefit from is empty rhetoric and more confusion," Dean said.
The submission by Industry Super Australia sets out their recommendations for ASIC to improve RG97.
ASIC's proposed changes to Regulatory Guide 97 (RG97) aims to improve the transparency around how super funds and managed investment schemes reveal fees and costs to consumers.
Included in the submission is what Industry Super Australia says is its key proposal - that the most effective disclosure regime is one that places a net returns measure, incorporating the effect of fees and costs, at its core.