Your Future, Your Super review
AIST supports the policy intent of the Your Future Your Super (YFYS) package of reforms. In our compulsory system, where engagement is low, members should be able to trust that super funds are being held to account for their performance. Those who wish to choose should have access to reliable and useful product information that prioritizes the most important metrics.
Workers should be able to move between jobs without accumulating costly unintended multiple accounts. More importantly, they should be able to trust that they have been connected to good quality products, and that super funds are transparent and accountable for how they use members’ money.
The YFYS reforms aimed to make progress on these issues. However, since the announcement of the reforms two years ago AIST has expressed repeated concern that important aspects of the package are flawed. Welcome policy intent is being undermined by measures and metrics that fail to cover the whole system, that fail to protect many from underperforming products, and that impose unnecessary regulatory costs.
AIST therefore welcomes the decision of the Government to review important aspects the YFYS framework in light of recent experience and industry concerns. In this submission we set out a series of recommendations for how the framework can be improved in ways that will help to benefit millions of members. We discuss the relevant problems under four headings. The full list of our recommendations is contained in the next section of this submission.
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