Advice fees paid by super funds total $1.1 billion
The impact of the Australian Prudential Regulation Authority’s (APRA’s) heatmaps and the Your Future Your Super performance test has been driven home by new data confirming the number of funds in Australia has actually decreased by nearly 30%.
APRA’s annual superannuation bulletin has portrayed a superannuation sector within which industry assets increased by 35.8% over the past five years, while the number of funds actually decreased. By 29.3%.
Conversely, the number of self-managed superannuation funds (SMSFs) grew by 7.7% to 603,000.
Where financial advice is concerned, advice fees paid by superannuation funds totalled $1.1 billion.
According to the APRA bulletin, over the five years from June 2017 to June 2022, the number of SMSFs grew by 7.7% from 560,000 to 603,000, whilst the number of APRA-regulated funds decreased by 29.3% from 2,163 to 1,530.
It said the decrease of 633 APRA-regulated funds over this period comprised 69 entities with more than six members, 20 pooled superannuation trusts (PSTs) and 544 small APRA funds.
This came against the background of total superannuation assets increasing by 35.8% over the five-year period from $2.5 trillion to $3.3 trillion, with APA noting that “over this period, APRA-regulated assets increased by 71.6% from $1.6 trillion to $2.3 trillion and SMSF assets increased by 32.7% from $655 billion to $869 billion.
It said that as at 30 June, last year, there were 86 APRA-regulated superannuation licensees responsible for managing 131 funds with more than six members.
The bulletin said that fees paid totalled $9.4 billion for the year ended 30 June 2022, with 88.2% of fees paid by members and the remaining balance largely paid by employer sponsors or from reserves.
“Administration fees in the year ended 30 June 2022 totalled $3.9 billion, insurance fees totalled $0.1 billion, investment fees totalled $3.4 billion, advice fees totalled $1.1 billion and activity fees totalled $0.7 billion.
Looking at service provider expenses it said fees paid to providers totalled $7.9 billion for the year ended 30 June 2022, with 83.1% ($6.6 billion) paid to external service providers and 16.9% ($1.3 billion) paid to internal service providers.
“Where financial advice is concerned, advice fees paid by superannuation funds totalled $1.1 billion”
And what’s the Industry Super charge to All their Members via Hidden Commissions for Intra Fund Sales that 95% of members pay for no service ???
Will anyone ever find this $$$$ massive Hidden Commissions for no service amount ???
You can’t find something you’re not looking for. So the answer is NO!
Not just that mate but also interesting if an analysis was ever done on how much of the aggregate fees charged ended up in union or Labor bank accounts…
that’s a good thing, isn’t it? After all University studies have shown people who get ongoing advice are financially better off (Griffith University 2022) and therefore shouldn’t they be allowed to pay for such advice in any way or manner they wish? Just remember these Super funds are corrupt and pay bribes to Government officials and have their own agenda.
Secondly Financial Adviser are highly educated by Tax Payer Funded and accredited Universities. Any accusations against Advisers, is a direct reflection on those Universities and Government accreditation processes.