Assistant Treasurer Josh Frydenberg says the Government is committed to improving transparency in the superannuation system.
Speaking at a Financial Services Council event Mr Frydenberg said the “Government has committed to making improvements” in terms of superannuation transparency.
“We want consumers to be able to compare the relative performance of superannuation funds, so they can choose the product that is right for them,” he said.
“The growing importance of superannuation to the financial system and to each and every Australian is why it is so important to get the regulatory settings for superannuation right. ”
The Government is also focused on competition among, and governance of, superannuation funds.
“The Government is keen to improve governance in superannuation. This was our commitment going into the 2013 election.”
“This means making sure there is an appropriate number of independent directors on superannuation fund boards, helping improve decision-making by broadening the range of skills. ”
Mr Frydenberg said the Government “wants to open up the default superannuation market so that there is more choice.”
“I have stressed, in the past, the importance of genuine competition in the default superannuation market.”
He said that more competition in the superannuation system would create pressure on funds to “gain business and be more efficient,” putting downward pressure on fees and leading to better consumer outcomes.
The final report of the Financial System Inquiry made recommendations about competition in the superannuation sector, which the Government will respond to “over the course of this year.”
Meanwhile Mr Frydenberg said the Government is “continuing to consult with the industry as we look to settle our policy in this area.”
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