Sweeping superannuation reforms likely post FSI

The Federal Government is promising to shake-up the superannuation industry, which it calls fragmented, costly, complex and suffering from a lack of member engagement. In accepting all but one of the Financial System Inquiry's recommendations, new legislation will be introduced to improve efficiency and competition in the sector. Increased member engagement, development of new income stream products and comprehensive governance and conflict of interest reforms are also on the Government's agenda.

The immediate outcome of the FSI is the Productivity Commission being tasked with:

• developing criteria to assess the efficiency and competitiveness of the superannuation system (with a focus on fees and after-fee returns for members);