Super funds fees to be laid bare
The Australian federal government is to force superannuation funds across the Tasman to disclose what funds members pay each year in fees
Wednesday, March 17th 2004, 9:22AM
From July 1, workers will be able to compare management fees in a similar way to the rules imposed on the disclosure of bank fees and mobile phone plan costs, the Sydney Morning Herald reports.
Ross Cameron, the parliamentary secretary to the federal Treasurer, said he has given up waiting for the A$546 billion industry to reform itself.
The Herald reports the government believed under-performing and overcharging super funds have hidden behind a confusing array of entry, exit, management, administration and financial planning fees that has made comparing funds almost impossible.
The government will impose its own formula and push through regulations under the financial services reform laws - ending a two-year transition period - unless the industry puts forward an agreed disclosure formula within a month.
The Herald says the revamping of super fee disclosure is expected to spark an exodus from commercial retail funds to non-profit funds, which have on average delivered better investment returns for less than half the fees.
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