This report provides background on the regulation of the superannuation industry and describes industry trends that have resulted in total superannuation savings in Australia exceeding the $1 trillion mark. It examines issues that relate to the reporting requirements of superannuation funds, including whether promotional advertising complies with the sole purpose test and whether funds are properly disclosing to their members expenditure on advertising; use of the term 'not for profit' by industry funds in the context of third party transactions with service providers and the propriety and transparency of these relationships; and complaints about the inefficiencies and cost associated with regulatory overlap.

The report addresses the issue of member investment choice and the debate over the role of the trustee and APRA's interpretation of law and policy in this area. It also examines issues under the umbrella theme of safeguarding superannuation savings. These include capital adequacy, uniform capital requirements and unit pricing; the relevance of APRA standards; current funding arrangements for prudential regulation; compensation arrangements in the event of theft and fraud and employer insolvency; portability and exit fees; and 'lost' superannuation.

Chapters 6 and 7 address arguably the central issue raised in evidence during the inquiry: the role of financial advice. Chapter 6 examines legislative barriers to cost-effective advice and how to overcome them in order to find a balance between consumer protection and accessibility of advice. Chapter 7 continues the theme of financial advice by examining how advisers are remunerated, especially concerns about conflicts of interest associated with commission-based remuneration models. It also discusses the important role of education and financial literacy programs in enabling both existing and new fund members to navigate the complex superannuation environment.

The report also examines the reasons for growth in the number of self-managed superannuation funds and issues relating to the administration, regulation and future viability of this industry sector.