FED: Super funds forced to offer low-cost fund in overhaul

AAP General News (Australia)
04-14-2010
FED: Super funds forced to offer low-cost fund in overhaul

SYDNEY, April 14 AAP - Every major Australian superannuation fund will be forced to
offer individuals a low-cost, low-service fund under an overhaul of the industry.

The Cooper Review into superannuation will propose that superannuation funds introduce
a new product that offers members no real investment choice and limited flexibility, but
is designed to bring down fees, The Australian reports.

Confidential papers obtained by the newspaper show the inquiry has backed away from
an original proposal to establish a separate universal default superannuation fund.

But the inquiry panel says the inclusion of a new product within existing funds would
still make a real impact on whether members with modestly-sized super accounts could have
a comfortable retirement.

AAP bzs/jfm

KEYWORD: SUPER

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