ASFA wants longer implementation on MySuper

ASFA/superannuation-funds/stronger-super/FOFA/association-of-superannuation-funds/government/mysuper/parliamentary-joint-committee/financial-advice/

1 February 2012
| By Staff |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND