Big changes are com­ing

The Daily Telegraph (Sydney) - - Racing -

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.

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