This is supported by an obligation imposed directly on the directors of a corporate trustee in relation to a MySuper product by s 29VO of the SIS Act, to a reasonable ‘exercise degree of care and diligence for the purposes of ensuring that the corporate trustee carries out the obligations referred to in s This requires degree of care and diligence that a 29VN’. ‘the superannuation entity director would exercise in the corporate and trustee’s circumstances’, for this purpose a superannuation entity director is a person whose profession, business or employment is or includes acting as director of a corporate trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity’. APPLICATION OF THE LEGAL PRINCIPLES This Chapter explains the how legal principles governing to the use of funds, members’ explained in Chapter 4, impact specifically on superannuation fund fees, trustee remuneration and expenses, investments, insurance and outsourcing. Fees Trustees may charge fees if this is provided for in the governing rules. Depending on their nature, fees will be deducted at the fund (or sub-fund) level or from a member’s individual account. The SIS Act restricts the types of fees that can be charged in connection with MySuper accounts and imposes certain requirements relating to fees for other accounts. The Productivity Commission found that fees paid exceed $30 billion per year (excluding insurance premiums) and that reported fees in Australia are higher than in many OECD countries. The government has recently introduced legislation to cap fees on certain low balance and inactive accounts, but otherwise the level of fees is a matter for the market, except where the legislation specifically provides that the fee must be limited to cost recovery. APRA collects and publishes information about fund level fees (by source of payment and type of fee) in its annual superannuation statistics. However as the Productivity Commission has observed, there are real limitations in the data collected. Part of the
This is supported by an obligation imposed directly on the directors of a corporate trustee in relation to a MySuper product by s 29VO of the SIS Act, to ‘exercise a reasonable degree of care and diligence for the purposes of ensuring that the corporate trustee carries out the obligations referred to in s 29VN’. This requires ‘the degree of care and diligence that a superannuation entity director would exercise in the corporate trustee’s circumstances’, and for this purpose a superannuation entity director is a person whose profession, business or employment is or includes acting as director of a corporate trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity’. APPLICATION OF THE LEGAL PRINCIPLES This Chapter explains the how legal principles governing to the use of members’ funds, explained in Chapter 4, impact specifically on superannuation fund fees, trustee remuneration and expenses, investments, insurance and outsourcing. Fees Trustees may charge fees if this is provided for in the governing rules. Depending on their nature, fees will be deducted at the fund (or sub-fund) level or from a member’s individual account. The SIS Act restricts the types of fees that can be charged in connection with MySuper accounts and imposes certain requirements relating to fees for other accounts. The Productivity Commission found that fees paid exceed $30 billion per year (excluding insurance premiums) and that reported fees in Australia are higher than in many OECD countries. The government has recently introduced legislation to cap fees on certain low balance and inactive accounts, but otherwise the level of fees is a matter for the market, except where the legislation specifically provides that the fee must be limited to cost recovery. APRA collects and publishes information about fund level fees (by source of payment and type of fee) in its annual superannuation statistics. However as the Productivity Commission has observed, there are real limitations in the data collected. Part of the
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