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IFSA Media Release

20 March 2010

MySuper Delivers Nothing New

The latest MySuper proposal released by the Cooper Review today will deny Australians control and
choice of their superannuation while providing nothing new.

“There is nothing in MySuper that isn’t already available in the market today at similar cost – and with
consumer choice and control”, Investment and Financial Services Association CEO, John Brogden
said.

Mr Brogden said that major superannuation funds already provide superannuation products with low
fees.

For example:
· Colonial First State provides a superannuation product with a passive investment option for
the total fee of 0.41% pa;
· First State Super provides a Diversified Option for 0.41% pa;
· AMP SuperEasy offers a product at a total cost of 0.50% pa; and
· SunSuper offers a passive balanced fund option for 0.21% pa and $1 a week.

The Cooper Review wants to create a great new bureaucracy around superannuation to produce an
outcome that already exists.

“What the Cooper Review doesn’t understand is that Australians want control and choice in
superannuation.

“Instead, MySuper will deny people the control and choice they want in their super with a dumbed
down, one-size-fits-all approach.

“MySuper will legislate for apathy and disengagement. At a time when research shows that there is
a $700 billion retirement savings gap, the Cooper Review is recommending a solution that actively
discourages people from engaging with their superannuation.”

“The Cooper Review has based this proposal on the incorrect assumption that fees are increasing.
The facts are that superannuation fees are consistently declining.”

Fees in large retail master trusts have fallen by 0.45 per cent to average 0.79 per cent (see Table 1).

“The cheapest segment of superannuation is government superannuation at an average of 0.69 per


cent, large retail funds are second at an average of 0.79 per cent and industry funds come third at 1.07
per cent on average”

“If the Government adopts the recommendations in SuperStream – the Cooper Review’s report on
administrative and efficiency changes – these fees will drop even lower.

“The retail sector is taking further action to drive costs even lower. The IFSA Superannuation Charter
unbundles advice and product costs and empowers consumers with greater choice and control in how
they pay for financial advice.
“Rather than taking control and choice away from consumers and legislating apathy, the Cooper
Review should focus on the cost reductions available through the administrative and efficiency
changes outlined in SuperStream”, Mr Brogden concluded.