Some superannuation products offered by two of the nation’s largest retail funds, AMP and MLC-owner Insignia, have repeatedly failed the annual performance test by the financial regulator, which has barred them from accepting new customers in those schemes.
The Australian Prudential Regulation Authority-administered test is in its fourth year, but has drawn the ire of super funds, that argue its consequences are too severe, parameters flawed, and that it is driving perverse outcomes across the sector including “index-hugging” investment.
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