Big changes are coming

A PUSH to lower fees for superannuation fund members by limiting them to just one default fund is likely to pass quickly into law.

The royal commission recommendations to simplify super and ban advice fees being taken from low-cost MySuper funds have the backing of both sides of parliament.

Jonathan Steffanoni from financial consultants QMV said the changes were “likely to be implemented with little politicisation”.

“The recommendations put forward by Commissioner Kenneth Hayne unsurprisingly take a razor to grandfathered commissions being deducted from superannuation accounts,” he said.

The Association of Superannuation Funds of Australia’s CEO, Martin Fahy, said the reforms would strengthen the super system.

“It’s now up to industry and regulators to raise the bar,” Dr Fahy said.

Financial services technology group SS&C Australia director Shaun McKenna said the royal commission and other reports would usher in significant changes for super funds.

“They will be policed by more aggressive – and potentially more powerful – regulators,” he said.