Latest Products

MySuper Transparency

Monday 27 June 2022

 

Super Trustees have been warned to be more transparent about their performance of the MySuper  products, as a review finds that the communications can be potentially misleading. 

The Australian Securities and Investments Commission (ASIC) said in an official statement about the Report 729 Review of trustee communications about the MySuper performance test , “The review found that trustees whose products failed generally complied with the legal obligations to notify their members of the failed test and to disclose the failed test on their website.

The report highlighted the there were seven  general communication concerns and the six mandatory communication concerns:


Our review suggested that often the primary aim of trustees whose product failed the test was to retain members, even if this involved using communication strategies that potentially undermined good decision making by individual members. Examples of these kinds of strategies included not prominently disclosing a test failure or presenting information to discount the importance of the test.

However, the securities and investments stated that just general compliance is not quite enough. 

“However, the communication strategies of some trustees may have risked confusing or misleading members about their product’s performance.”


For more on potentially misleading communication Report 729 refers to  RG 234: Advertising Financial Products and Services  and RG 53 The use of past performance in promotional material.
 
 
Expectations for Trustees

ASIC Commissioner Danielle Press said in an official statement, “For the 2022 performance test, we expect trustee communications to reflect our expectations for prominence, balance and clarity set out in REP 729, including where products fail for a second time. Where we see a need to, ASIC will take appropriate action to protect consumers.”