Australians deserve a superannuation system that is fair, efficient and competitive. When it comes to the regulatory environment, Australian superannuation funds have been navigating the biggest reform agenda since the system’s inception.
Design and distribution obligations, a new anti-hawking regime and a strengthened breach reporting regime that now has a zero threshold for materiality, are just some examples.
These new regulations have been implemented to promote good member outcomes. But we need to ask whether the current legal and regulatory environment is as efficient as it could be in achieving this objective.
A priority of the FSC’s after the Federal Election will be arguing for red tape reduction and removing unnecessary and duplicative disclosure requirements.
Multiple layers of regulation, such as superannuation product dashboards, APRA heatmaps, and the member outcomes assessment may be past their use by date now that new reforms in the recent ‘Your Future, Your Super’ package have been implemented.
Lowering regulatory cost of the superannuation system will be beneficial for consumers and allow providers to invest in innovative new products, particularly around retirement income.
It’s important we get the balance right. After all, we’re talking about a system that now manages $3.5 trillion in Australian retirement savings. We therefore need to ensure the system continues to evolve in the interests of the people in which it has been built to serve.
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