Super fund review to promote greater competition
Super funds will be required to be more transparent and accountable when reporting their financial affairs under recommendations to be issued in the final report of the Cooper Review next month.
Speaking at a luncheon of the Committee for Economic Development of Australia yesterday (May 26th), Mr Cooper said more information would boost awareness about fund performance and promote greater competition by giving consumers clearer indications about future returns, the Australian reported.
"In a nutshell, the system is not operating efficiently enough and members are entitled to better," he said.
"Competition in the market for super at the consumer level between rival funds competing for new members is relatively weak."
The reforms may also prompt more Australians to compare term deposits in search of better sources for their long-term savings. Mr Cooper said that at present, the multi-layered structure of most super funds is making it difficult for consumers to distinguish one super product from another.
Meanwhile, the Advertiser reported this week that the Personal Properties Register is to launch a new national register of debts and claims against personal property as a way of offering more protection to consumers.
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