The Parliamentary Secretary, the Hon Ross Cameron MP today welcomed the research contribution by the Association of Superannuation Funds of Australia (ASFA) on ways to improve consumer understanding of superannuation fees and charges.
The Government has sought to promote effective disclosure of superannuation fees and charges, following on from the enhanced disclosure regime of the Financial Services Reform Act 2001.
ASFA's contribution is based on suggested changes to the ASIC brokered fee disclosure model, which was developed by a group of key industry and consumer bodies. Those bodies included ASFA, the Investment and Financial Services Association and the Australian Consumers' Association. The group worked together to build a consensus for industry-based disclosure standards for fees and charges of superannuation and managed investment funds.
At the time of its release, ASIC recognised that there was potential for the model to improve and evolve and accordingly recommended that industry consumer test the model. At that time, the CEO of ASFA Ms Phillipa Smith publicly welcomed the release of the model.
Mr Cameron said, 'At a time of significant change in the transition to the Financial Services Reform Act it is vital that industry and consumer bodies continue to come together to share ideas to benefit greater consumer understanding.'
'The Government will await the presentation of ASFA's consumer testing research results to ASIC and other members of the group for their joint consideration as part of the on-going collaborative approach to implementing the FSR disclosure requirements.'
'ASIC continues to offer its assistance to build consensus between industry and consumer groups on other comparability tools and I am confident today's research release will provide for further discussion.'
'I look forward to ASFA's ongoing contribution to the ASIC forum and I hope they will take the opportunity to present the Chant West research to other members of the group, to develop a way forward with the whole of industry.'