The Federal Government's Review into the governance, efficiency, structure and operation of Australia's superannuation system (the Review) may result in some of the most significant reforms the superannuation industry has seen in recent years.

While it is not possible to predict what the precise outcomes of the Review will be in relation to fees, it is at least clear that certain practices in relation to fee arrangements are likely to be the subject of considerable scrutiny throughout the Review.

In this regard, it is the view of the author that those fee arrangements that are simple, transparent and which demonstrate a clearly discernible link between the services provided and the fees charged, are less likely to be affected by the Review than those fee arrangements that are complex, ambiguously disclosed and which demonstrate little or no relationship between the service provided and the fee charged.

Furthermore, as can be seen from the brief overview set out above, any recommendations made by the Review could potentially have a significant impact on how fees are charged by not only superannuation trustees, but also investment managers and financial advisers, among others.

Accordingly, superannuation trustees and other industry participants would be well advised to consider the potential impact of the Review now when entering into any long-term contractual arrangements or making any commercial or strategic decision that is likely to have a material impact on their business.

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