Date issued: 29 May 2009
The Federal Government's review of the superannuation industry offers the opportunity to restore much needed confidence and clarity according to CPA Australia.
CPA Australia superannuation policy adviser Michael Davison said issues around the operation of self-managed super funds (SMSFs), the reduction of costs to super fund members and the role of advisers were among a range that needed close examination.
'Putting these issues — and a range of others — under the review's microscope, will go a long way toward restoring confidence in the industry and the system,' he said.
'The accounting profession has a critical contribution, both to the review and to the ongoing health of the system. Accountants' role in establishing the necessary governance structures and auditing processes will be crucial in building and maintaining the right architecture.
'As advisers however, they will also be crucial in ensuring the best outcomes for superannuation funds.'
CPA Australia believes the review must focus on a range of issues. These include:
- Ways to ensure clarity in disclosure of fees and charges;
- Minimisation of fees and charges to ensure best outcome to fund members;
- The operation of SMSFs, particularly governance and the role and nature of advice given;
- Increasing and improving comparability of various products; and
- Equal levels of disclosure and transparency across sectors
Mr Davison said the crisis in world financial markets and subsequent global economic downturn had highlighted the importance of the superannuation industry.
'What these events have also highlighted is how critical it is that Australia has a well-functioning robust system that provides certainty and clarity. Achieving this will have far-reaching and ongoing economic and social benefits.
'CPA Australia looks forward to making its contribution to this review.'
*Michael Davison is available for further media comment