Published: 15 Nov 2022
ISA broadly supports the intention of the Your Future, Your Super reforms to create a more efficient and fair superannuation system that improves the retirement outcomes of Australian workers.
However, relying on members to move out of poor performing products is not working, and information about performance test outcomes is not presented to consumers in a way that identifies products that are adding value to members and those that are losing them money.
There needs to be tougher consequences for failing or only just passing the test, to better protect members from underperforming products.
Read ISA's YFYS Review submission here
In a supplementary submission, ISA makes seven specific recommendations to improve the integrity and robustness of the performance test. While ISA suggests material changes to the performance benchmark methodology are warranted, minor changes could be implemented as an initial step to improve outcomes before effecting more significant changes.
Read ISA's Performance Test Methodology Supplementary Submission here
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.