ASFA wants longer implementation on MySuper
The Association of Superannuation Funds of Australia (ASFA) is calling on the Government to provide a longer implementation period for the introduction of MySuper arrangements.
In a submission filed with the Parliamentary Joint Committee reviewing the Government's Stronger Super bills, ASFA has argued that the employer compliance date for MySuper arrangements should be extended beyond the Government's planned 1 October, 2013, deadline to 1 July, 2014.
The ASFA call for a longer implementation period for MySuper follows on from arguments around the Government's 1 July, 2012, implementation date for the Future of Financial Advice (FOFA) bills.
The ASFA submission said that while the organisation supported the Stronger Super reforms, "it is important to note that compliance with these reforms will necessitate considerable changes being made to a mature and complex superannuation system".
It said that, in addition, the FOFA reforms which are due to commence during the same period would have a significant impact on the structures of some superannuation funds.
"Some trustees will need a great deal of certainty in relation to the legislation to be able to make the threshold decision as to whether or not to provide a MySuper offering," the submission said. "This is the case in particular where a relatively small percentage of contributions are default contributions."
It said that following the threshold decision, there were a variety of strategic and tactical decisions which needed to be made.
"As we are unlikely to see final legislation in the first half of 2012, the time afforded to implement is greatly reduced," the ASFA submission said.
It said that often there were capacity constraints, interdependencies and unintended consequences, especially when it came to implementing system changes.
"Rushing to meet deadlines materially increases the risks to a project and can increase costs which are ultimately born by the member," the submission said.
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
