Funds Management MC
Super merger mania could hurt members: Bennelong
InvestorDaily
Diversity needs to be preserved as the consolidation trend in superannuation accelerates, a fund manager has warned, fearing regulators’ pressure on funds to merge could kill competition. APRA has encouraged the movement, urging small and underperforming funds to amalgamate and save their members from “suffering” further deterioration. The executive director of the regulator’s new superannuation department, Suzanne Smith, said funds should also be looking to simplify their offerings.
The House of Representatives standing committee on economics interrogated super funds for the first time last week. During the hearings, government MPs focused largely on the findings of the Productivity Commission, which estimated there are 40,000 super products available to consumers in the Australian market. Labor MP Andrew Leigh noted in a typical supermarket, there are 20,000 to 25,000 products available.
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