Some superannuation funds pitched at millennials via social media are struggling to reach the required scale to enable them to perform strongly.
The country’s worst performing default superannuation fund has been forced to exit the industry,after mounting pressure from the prudential regulator over chronic underperformance.
Major bank economists are expecting the prudential regulator to hold off introducing more lending restrictions as the likelihood of an interest rate rise this year increases.
The two super funds have signed a memorandum of understanding after leadership turmoil at EISS Super and pressure from the regulator.
APRA has found two-thirds of choice funds underperform on fees and returns,with one-quarter delivering ‘significantly poor returns’.
Property prices are sky-high,but many people will find it harder to buy as a lending clampdown cuts their borrowing capacity by as much as 15 per cent.
Josh Frydenberg has opened the door for financial regulators to intervene again in the property market as house prices continue to rise.
Banks will be required to set aside more capital for higher risk interest-only and investor mortgage under long-planned changes to the capital framework.
Depending on which economists you are following,official interest rates could be going up as soon as next year or 2024.
The new “stapling” measure means that workers’ super funds follow them from job to job;that includes funds that failed APRA’s performance test.
The financial regulator has ramped up the pressure on EISS Super to merge with a bigger rival after an expenses scandal at the underperforming super fund.