The superannuation fund industry might be strongly supportive of a principles-based approach because it appears to enable more flexibility in product design but David Bell argues it might not be that straight forward.
Underperformance relative to the government’s proposed test could end up being a competitive advantage in the long run for funds like Rest which are now laser focused on outcomes relative to the listed eight-year benchmark, Vicki Doyle highlights in a wide-ranging interview.
The debate around which stapling model has raged to the point where stapling works best is now at risk of not proceeding, which would be a shame because either proposed model would improve consumer outcomes, David Bell writes.
Politicians just don’t have the expertise to assess the effectiveness of ASIC and APRA, the bill explains. As per Hayne’s recommendation, the new Financial Regulator Assessment Authority will be tasked with doing the job properly.
Concerns remain about unintended consequences that are yet to arise, but Aware Super CIO Damian Graham believes the government’s second iteration of the performance test is a ‘reasonably pragmatic middle ground’.