APRA has sounded a warning on excessive non-investment fees as its heatmaps blanket many for-profit administration fees in a sea of red.
But, staggeringly, the government continues to ignore the regulator and has deliberately excluded administration fees from its new performance benchmark regime.
The retail sector generates much of its $10 billion annual profit from its lucrative administration fees, and by deliberately carving them out from the performance benchmarks in the Your Future, Your Super legislation the government risks undermining the entire reform package.
The government must shift to the more logical net-return measurement – that tests performance based on all fees and charges – not carving out administration fees.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.