CHANGES TO BENEFIT RETAIL INVESTORS SAYS SHERRY

Written on the 13 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 their periodic statements to members.

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

SUPREME COURT ORDERS OCTAVIAR GROUP TO WIND UP

THE Queensland Supreme Court has ordered the Octaviar Group of companies (formerly known as MFS Group) to be wound...

CEOS BRAVE THE COLD TO RAISE $1.4 MILLION FOR THE HOMELESS

MORE than 400 executives confronted the cold last night in the annual Vinnies CEO sleepout, which took place benea...

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and ...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter