AUSTRALIA - Members of self-managed super funds are being "ripped off" by high fee levels and expenses, said Nick Sherry, shadow minister for superannuation.
Sherry released figures that showed total average expenses for funds with under A$50,000 in assets was between 3-6% or $1500, while those with an asset value of $50,000 to $200,000 had expenses between 2-3% or $2902.
He described such expenses as “a shocker”, and added that even funds with a balance greater than $300,000 appeared to be paying between 2-3% or $11,828 a year.
“Many of the more than 300,000 individuals who have established such funds are being ripped off,” he said.
The fact that there was over $8bn in funds with a balance of less than $200,000, the minimum level recognised by both industry and the regulator ASIC, illustrated massive levels of mis-selling, said Sherry.
“Clear disclosure to enable Australians to be informed at a fund level together with tougher regulation is immediately required to protect hundreds of thousands of Australians.”
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