Changes to benefit retail investor says Sherry

Written on the 12 May 2009

 

THE Minister for Superannuation and Corporate Law, Senator Nick Sherry, says changes that will require superannuation funds to report long-term returns in member statements will help retail investors better understand their super.
“It is important that super fund members appreciate that super is a long-term investment,” says Sherry.
“The past year has been a difficult one for super fund members due to the impact of the global financial crisis on returns.
“However, if fund members focus only on short-term returns, they risk switching investment options or funds to their long-term detriment.
“Clear information about medium-to-long-term returns can help fund members better appreciate that superannuation is a long-term investment.”
The regulatory changes, which have been the subject of extensive, targeted consultation with all parts of the superannuation industry, would require super funds to disclose five and 10-year returns in periodic member statements.
The measure will also require returns to be disclosed at the investment option or sub-plan level in which the member is invested; and require the long-term returns to be highlighted, positioned and presented in a manner that will attract the member’s attention.
For the upcoming reporting season 2008-09, only the five-year return would be required to be disclosed and disclosure could be made either on the periodic statement or in a separate insert which would be sent to members together with the periodic statement.
“The disclosure of long-term super fund returns in member periodic statements would assist super funds to better communicate the fund’s performance over a market cycle, including rising, falling and flat markets to their members,” says Sherry.
In line with the Rudd Government’s aim of increasing efficiencies and reducing costs for members, super funds will also be able to use a website as the default method of delivering their annual report.
“This measure will potentially save super funds thousands of dollars in printing and production costs, savings which could be passed on to members,” says Sherry.
In addition, where a member has electronic access to personal fund information and has given permission, the fund will no longer be required to provide a written or an electronic member statement.

Latest News

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

WHAT THE COLLAPSE OF ADWORDS MEANS FOR THE FUTURE OF ONLINE MARKETING

IT'S the story that has rocked the world of advertising. The once reliable, seamless, and lucrative Google (NASDA...

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter