No performance test for retirement products – FSC | Australian Markets
The Government could be unsuitable to hunt to increase the superannuation performance test to retirement income products, in accordance with the Financial Services Council (FSC).
At the identical time, it mentioned the person outcomes needed to stay the main focus of national retirement coverage.
Commenting on the present Treasury session on Retirement Reporting the FSC has additionally sought to emphasize the significance of particular person relatively than group retirement outcomes.
FSC chief govt, Blake Briggs mentioned that whereas his organisation famous the session stress on transparency, it wished to warning in opposition to the Government in opposition to utilizing collected to increase the Annual Performance Test to retirement section.
He mentioned the FSC had long argued the performance test isn’t acceptable for retirement products as a result of investment portfolios range considerably between people, relying on their retirement targets, making product comparisons a fraught endeavour.
“Performance testing of retirement products would lead to adverse outcomes, given that retirement is personal and should not be treated uniformly,” Briggs mentioned.
“No two people’s retirements are the same and should not be treated as such by the Government or superannuation funds,” he mentioned. “Retirement policy should focus on ensuring that people are given the tools to make decisions that steer them towards the kind of retirement that they want, this includes access to guidance, financial advice and a range of products to help shape their futures.”
Briggs mentioned that whereas the revealed Principles replicate an elevated concentrate on the retirement section of the superannuation system, the FSC is looking on the Government to proceed to keep up its concentrate on particular person outcomes.
“We are pleased to see Treasury’s framing of the principles starting to focus more on individual outcomes, which we think is vital to ensure people have choice when it comes to choosing their superannuation and empowers them to select investment strategies that align with their financial goals and personal values,” he mentioned.
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