The draft legislation requires superannuation funds to publish on their websites:
- details of director and executive pay;
- details of what assets the fund has invested in; and
- an up-to-date ‘product dashboard’, setting out information on target investment returns, past performance against targets, investment risk, liquidity and fees, in relation to each product offered by the fund.
‘In the wake of collapses such as TRIO, it is important for Australians to know where their super savings are being invested. I also think it’s valuable to understand how we can extend these standards outside super,’ Minister Shorten said.
‘I will be holding more discussions with key stakeholders on how to further improve transparency and governance in the superannuation industry. Better representation of women on super boards and requiring more regular board renewal are amongst these issues.’
The legislation also provides for the APRA to undertake enhanced data collection and publish a wider range of superannuation information, including quarterly data on MySuper products. Further, more detailed transparency requirements will be able to be specified in regulations.
The draft legislation will give effect to the Government’s commitment that MySuper will be commission-free. ‘By prohibiting commissions and putting downward pressure on fees, MySuper is estimated to reduce the total fees paid by superannuation funds members by $1.7 billion per year over the longer term,’ Minister Shorten said.
The draft legislation also provides the remaining legislative elements relating to MySuper, including provisions relating to intra-fund advice, insurance, and the transition to MySuper.
Submissions on the exposure draft legislation close on 16 May 2012.
