ASIC has outlined its proposal to adopt a single framework for how superannuation forecasts can be provided under the regulator’s relief from personal financial advice requirements.
As part of the proposed framework, trustees and other providers would be able to set their own reasonable assumptions relating to investment earnings, fees and costs, and trustees would be able to tailor these assumptions to their product offering or to the investment strategies of their members.
The regulator said that the common framework would also ensure greater consistency between the assumptions used for superannuation calculators and retirement estimates.
ASIC said it plans to create a new single legislative instrument that will continue providing relief for financial calculators, which can be provided by any person, and retirement estimates, which can only be provided by superannuation trustees to their members.
“Superannuation calculators and retirement estimates can help consumers think ahead about what role their superannuation can play in their retirement income,” said ASIC commissioner Danielle Press.
“ASIC’s proposals provide trustees with forecasting tools for members that can be helpful in implementing a retirement income strategy under the Government’s proposed retirement income covenant.”
ASIC has also proposed setting standard assumptions for retirement ages and inflation rates that must be used by default, which it said would promote consistency across the industry.
The regulator has called for feedback on the proposed changes from industry participants, consumer groups, actuaries and other interested stakeholders.
“We want to hear from stakeholders about how our relief can best facilitate industry’s appropriate provision of tools that help super fund members to think about retirement income,” said Ms Press.
“We would welcome recent evidence on how calculators and estimates have influenced consumer outcomes in practice to help ASIC ensure our proposed relief is fit for purpose.”
