ASFA said the draft legislation will provide for a more targeted view of portfolio holdings, achieving a better balance between transparency and compliance costs.
The industry body said the choice product dashboard – which requires super funds to develop product dashboards for their top 10 (by value) superannuation choice investment options – is an “important initiative” to enable greater comparability of investment options within a fund.
ASFA chief executive Pauline Vamos said the reforms will “assist consumers while limiting the costs of implementation, which are ultimately paid for by fund members”.
“The announcement creates greater certainty for the industry, but it is also important that the timeline for implementation is a minimum of 12 months to limit costs and implementation risks,” Ms Vamos said.
The Financial Services Council (FSC) also argued that the reforms will result in better outcomes for members in terms of transparency.
FSC chief executive Sally Loane said: “This is a good outcome for consumers and will increase transparency on a range of information associated with superannuation.”
The FSC also said reforms, which will enable employees covered under enterprise agreements or workplace determinations that are made from 1 July 2016 to choose their own fund, will deliver more choice to members.
“Consumers will be better off in retirement if they are free to choose their own superannuation fund and are provided with transparent, comparable information to make informed choices," Ms Loane said.
“Enterprise agreements are preventing an open and competitive superannuation system where both employers and employees can choose the super fund that best suits their needs.
“We need a modern superannuation system which will deliver the best possible results for all Australians as we transition towards funding our own retirement and which reduces our unsustainable reliance on the age pension system,” Ms Loane said.
