The Australian Institute of Superannuation Trustees (AIST) and the Investment and Financial Services Association (IFSA) have supported the recommendations in the preliminary Cooper review.
"We welcome the Cooper panel's recognition that the majority of Australian workers who do engage with their super need the protection of a well-run low cost default super fund and that such funds should remain in the industrial award system," Reynolds said.
The AIST also supports the Cooper recommendations for a strict default fund criteria, particularly if this extends to no commissions to financial advisers, according to Reynolds.
"However we do have reservations about whether so-called lifecycle strategies are necessary for default funds as Cooper seems to be proposing," she said.
The review's recommendation that the default superannuation should be open to all market sectors was supported by IFSA.
"This will guarantee that people get the best product, rather than what is dictated by an award," IFSA chief executive John Brogden said.
"The default fund system is currently a closed shop, yet IFSA has retail and corporate super funds as members who could offer funds to employers and their staff that have significantly lower fees than industry funds and superior life insurance offerings.
"IFSA is therefore pleased that the preliminary Cooper Report has identified the need for competition in the default space and we look forward to examining the detailed recommendations for Phases Two and Three of the review", Brogden said.
