ASFA has released its submissions to the Parliamentary Joint Committee on Corporations and Financial Services as part of the Committee’s inquiry into the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012. The Bill is the third tranche of MySuper legislation and proposes to introduce measures relating to the transition of accrued default balances to MySuper by 1 July 2017, default funds in modern awards, superannuation fees, providing intra-fund advice, insurance and the disclosure of executive pay and investments.
ASFA said it has concerns with the definition of “accrued default amounts”, the undue restrictiveness of the administration fee provisions and the imposition of offences of strict liability (as opposed to fault liability). ASFA has recommended the removal of the reference to members who have exercised investment choice and, in doing so, have chosen to have some or all of their superannuation in the fund’s default investment option. ASFA also considers that the proposed requirement that all members should be charged the same percentage amount should be replaced so that all MySuper members must be charged a fee in accordance with the same percentage scale.
[LTN 194, 8/10]