Super groups push government to go ahead with Choice fund dashboard

Superannuation lobby groups have hit out at proposals to delay regulations that would allow for easier performance comparisons for Choice superannuation products.

The requirement to expand the dashboard requirements to Choice super products, which are owned by 7 million people, was originally set to come into force eight years ago. Picture: iStock

Key industry superannuation lobby groups have hit out at proposals to delay regulations that would allow for easier performance comparisons for the 7 million members of Choice super­annuation products.

In submissions to the Australian Securities & Investments Commission, Industry Super Australia and the Australian Institute of Superannuation Trustees are opposing its plans to defer the requirement for super funds to offer Choice product “dashboards” from the proposed start date of July next year, to July 2027.

“Further deferral by ASIC continues to enable the Choice sector to avoid scrutiny,” ISA senior policy officer Ella Cebon said in the group’s submission.

Ms Cebon said the deferral would “disadvantage millions of members who invest in Choice products”.

The product dashboards, which allow for easier performance comparisons between superannuation funds as well as details on fees and charges for each super fund, have been required by ASIC for My Super default fund products since 2013.

The requirement to expand the dashboard requirements to Choice super products, which are owned by 7 million people, was originally set to come into force eight years ago. But it has been deferred by ASIC until July 2023, which is now proposing to defer it again until July 2027.

“Eight years after the product dashboard obligations were scheduled to commence for Choice products, they have not been implemented,” Ms Cebon said.

“The proposed deferral would postpone the obligation until 2027 – a total deferral of 13 years.

“This cannot possibly reflect the will of the parliament at the time the law was passed.”

Ms Cebon said the deferral of the product dashboards “allows the Choice sector to avoid clear, consistent and comparable disclosure to 7 million product members of important information including fees, costs and net ­returns”.

“This hinders informed choice by consumers which can drive competition and place downward pressure on fees,” she said.

A report by the Productivity Commission attributed the delay to “industry resistance and an attempt by government to exempt some products from the rules”.

AIST chief executive Eva Scheerlinck said trustees of My Super products had been required to provide dashboards since 2013.

“Due to continued deferrals by government, funds with Choice options would not need to have their own dashboards in place for another five years (under the latest proposed deferment),” Ms Scheerlinck said.

She said all superannuation products should be “held to the same high standards of transparency and disclosure, without exception, as they contain Australians’ retirement savings”.

Ms Scheerlinck called on the party that won government in the May election to introduce regulations mandating superannuation to disclose the performance of all Choice products.

“Postponing the introduction of legislated disclosure requirements for 13 years is contrary to the intention of the Australian parliament and denies consumer protection for millions of Australians holding Choice superannuation products,” Ms Scheerlinck said.

She said if more time was needed to develop the supporting regulations, there could be a delay of no longer than another year – to July 1, 2024.

She said the delay raised questions about the current government’s commitment to “transparency, disclosure and accountability, and whether it was more interested in protecting the manufacture of high fee, low return Choice products than helping Australians with their super”.