Greater transparency brought on by new regulatory requirements will lead to funds quickly realising the writing is on the wall to merge, but time might be running out for some, Togethr and Equipsuper's Andrew Fairley says.
The government's proposed treatment of dividend payments by retail funds as "out of scope of the best-financial interests test" doesn't reflect the policy intent of the measure or members’ best financial interests in any sense, an AustralianSuper policy submission has noted.
Funds will need to think carefully about marketing and branding activities in light of the government's proposed best financial interest amendments which bans the use of member money for branding while adding oversight to marketing spending.
The Labor MP expressed support for some kind of a performance benchmark to hold underperforming funds to account, but he said the government’s current proposal falls short during an interview on Monday.
REST Super is among the funds likely to fall short of the government's new performance benchmark even though its MySuper product also stands to be one of the major beneficiaries of the proposed ‘stapling’ changes.