The Institute of Public Accountants (IPA) has urged the government to make further improvements to the level of transparency in the super system and standardise reporting formats across APRA funds and SMSFs.
In a submission to the Productivity Commission’s study into the efficiency and competitiveness of the superannuation system, the IPA said one of the objectives for the super system must be focused on integrity or the transparency of the system.
The IPA said superannuation members should be able to access the information to enable them to determine and understand their future retirement entitlement based on existing inputs and outputs.
“Members [should also be] able to adequately compare fees and returns with other similar funds on a like-for-like basis,” said the IPA.
Consistency with standards of reporting in the disclosure of data, the IPA argued, is also vital for a proper assessment of the efficiency and effectiveness of the super system.
The IPA referred to the Cooper Review, which found there is a “lack of systematic transparency in the superannuation funds industry; specifically, there is a lack of standardised methodology for the calculation and disclosure format of investment options, risk, return and costs of funds to provide quality information for any expert analysis”.
“The Institute is of the opinion that a standard methodology of reporting across all super funds would enhance the ability of both the ATO and APRA to share and match data which would likely lead to the reduction of the reporting burden of funds by reducing and streamlining reporting obligations,” said the IPA.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
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