Research commissioned by Industry Super Australia (ISA) suggests that the big four banks took a third of the estimated $30 billion in fees generated out of the nation’s $2 trillion superannuation sector in the 2014-15 financial year.
According to Fairfax Media, the report, by consultants at Rainmaker said not-for-profit funds generated 25 per cent of the fees but held 41 per cent of funds under management, while retail funds claimed 50 per cent of fees despite holding only 30 per cent of all funds under management.
ISA chief executive David Whiteley said that the fees directed to the larger entities lacked transparency, arguing the current regulatory focus on industry funds was misplaced.
“You’ve got a $2 trillion super industry generating $30 billion in fees and $10 billion of that goes to four banks, and these are the banks campaigning to dismantle the superior not-for-profit model,” he said, according to Fairfax.
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